A Guide to Dividing Marital Assets During Divorce
When it comes to a divorce, few things are as important as dividing marital assets. The division of marital assets can significantly affect a couple’s financial future and can be a source of contention in a divorce. To ensure a fair division of assets, it is important for divorcing couples to understand the process and how assets are typically divided.
Marital assets are items that are acquired or accumulated during the course of the marriage. This includes assets acquired through gifts, inheritances, or premarital agreements. Marital assets may include items such as bank accounts, real estate, investments, vehicles, furniture, and any other property that has been purchased or accumulated during the marriage.
How Are Marital Assets Divided?
In most states, marital assets are divided equitably during a divorce. Assets are divided in a way that is fair and just to both parties. This can be done through negotiation between the parties or through the court. In some states, the court may also consider factors such as the length of the marriage, the contributions of each spouse, and the current financial situation of each spouse. There are nine states that still use the equal distribution of assets and liabilities, and they are New Mexico, Texas, Colorado, Arizona, Washington, Wisconsin, Louisiana, Idaho, and California. In Alaska, a couple can choose which method of distribution they want to use for their divorce.
What Factors Are Considered When Dividing Marital Assets?
When dividing marital assets, the court will consider a variety of factors. These include the duration of the marriage, the contributions of each spouse to the marriage, and any premarital agreements that were made. The court will also consider any debts or liabilities, such as mortgages or credit card debt, that were incurred during the marriage. Lastly, the court may also consider the current financial situation of each spouse, such as their income and other assets.
What Are Commonly Excluded From Divorce Settlements?
In some cases, the court may decide to exclude some items from the division of marital assets. This includes items that were acquired before the marriage, such as inherited property, items that were purchased using separate funds, and items that are solely owned by one of the spouses. Additionally, the court may also exclude items such as gifts and inheritances that were given to one of the spouses during the marriage. However, any assets or liabilities having both names on the ownership will be considered marital. Even those assets and liabilities owned singly before marriage, such as a house, if after the marriage they are put in both party’s name, they are considered marital.
What Are the Best Tips for Dividing Marital Assets?
When it comes to dividing marital assets, it is important for divorcing couples to keep in mind a few important tips. First, it is important to be aware of your rights and the rights of your spouse. You should also be aware of the laws in your state regarding the division of marital assets. Additionally, it is important to keep a detailed list of your assets and debts, and to be prepared to negotiate with your spouse. Lastly, it is important to have legal representation to ensure a fair division of assets. Keep all receipts and records of marital and nonmarital assets and liabilities. And, if a couple can settle their divorce during mediation, they will have a say regarding how marital assets and liabilities are divided.
Dividing marital assets can be a difficult and contentious process. With the right knowledge and preparation, however, you can, at mediation, ensure that the division of assets is fair and just to both parties. Going to court will allow a judge to decide the division, and sometimes their idea of fairness is not your idea. If you are considering a divorce and need help with dividing marital assets, a family lawyer can help you.