Dividing property in a divorce is complex and delicate. When a marriage ends, both parties must separate their shared assets, including homes, vehicles, financial accounts, and other property.
The division must be fair, but it often leads to disputes, especially if the parties cannot reach a mutual agreement. Experienced divorce lawyers can help navigate the legal aspects of property division, ensuring a smoother process for their clients.
In the sections below, we break down the steps in property division during a divorce.
1. Identifying Marital Property vs. Separate Property
Determining what constitutes separate and marital property is the first stage in property division. Generally, assets and wealth acquired during a marriage are considered marital property.
This might include loans and credit card debt to retirement funds, savings accounts, and real estate. Conversely, assets obtained before marriage or received as gifts or inheritances are considered separate property.
2. Valuing the Property
Once the marital and separate properties are identified, the next step is to assign a value to the marital assets. This process can be complicated, especially regarding real estate, businesses, or valuable collectibles.
An appraiser or financial expert may be hired to determine the value of certain assets. The value of each property is typically calculated as of the date of separation, but in some cases, it may also be determined at the time of divorce finalization.
This phase is essential because a precise assessment guarantees that each spouse will get a fair portion of the marital assets. Disagreements over evaluations can often lead to prolonged negotiations or court hearings. If the parties cannot reach an agreement, a judge will decide.
3. Negotiating the Division
In many cases, couples can negotiate how to divide their marital property. This may involve discussions about who will keep the house, how retirement accounts will be split, or who will take responsibility for any shared debts.
Mediation or collaborative divorce methods are often used to facilitate this negotiation, as they allow both parties to work together with the help of professionals.
4. Equitable Distribution vs. Community Property
The method of property division depends on the state laws where the divorce occurs. Two primary legal systems for property division exist.
- Equitable Distribution: Property is divided fairly but not equally in most states. A judge will consider things such as the length of the marriage, how much each person has contributed financially and non-financially, and the needs of any children. This approach permits flexibility in the allocation of the assets.
- Community Property: All assets acquired during a marriage are regarded as jointly owned and are usually split 50/50 in places with community property laws. However, even in community property states, exceptions can be made based on the case’s specific circumstances.
Final Thoughts
Divorce can be overwhelming, and property division adds more complexity. It is crucial to understand the procedures involved in this process to guarantee a just and equal distribution of assets.
The property split procedure might go more smoothly and amicably if you seek legal counsel from a skilled divorce attorney. Remember, communication and compromise are key when negotiating the division of marital property.
