Divorce has several complexities, but one of the most controversial parts is making arguments for the division of assets. The decision primarily depends on the individual circumstances of the union and can have various outcomes. However, it is hard to predict the settlement outcome, but understanding your state’s laws can help.
Moreover, the factors the court can consider are a step towards gaining insight into the division of assets in divorce.
Whether a marriage lasts 5 or 50 years, the division of assets is a complex process. The court assumes that both people contributed an equal amount to each desirable support. Thus, the court entitles the purchases to half of everything.
Divorce is full of legal complications. There is no way to fully predict your settlement’s outcome, but knowing what a court will consider.
What kind of property do you own?
Division of assets is a big issue during a divorce. However, one of the most common questions is, “Who will get the house?”
State law will usually dictate the dividing up of your property. Although the division of assets in divorce depends on whether you reside in a separate assets state or a community property state:
- Individual assets belong only to one spouse, like something you owned before getting married, gifts or inheritances given explicitly to you. Or the proceeds of a pension vested before the marriage.
- Community property is a thing both of you earned during your marriage. For example, the money in a joint account; is used to pay bills or debts during your wedding. Moreover, property, like a house, was bought together.
Factors to Consider When Dividing a Property
Suppose you live in a common-law property state that uses equitable distribution. In that case, you may wonder what factors the court uses to decide what assets division is fair to both parties.
The factors for dividing assets considered by courts differ from state to state. Some common factors include:
- Marriage duration
- Income and possessions of each spouse when they married
- Income and belongings of each spouse when they filed for divorce
- Age and health
- If the separating couple has minor children together, the need for the custodial parent to hold the marital residence
- Value of profits that a spouse may lose because of the divorce (e.g., health insurance)
- Inheritance or pension loss rights of either spouse as a result of the divorce
- The degree of liquidity of marital property
- Tax penalties for the distribution
- The carelessness of either spouse
- The future financial conditions of each spouse
Moreover, it is necessary to focus on the above factors that apply to the excellent division of assets. However, it does not include divisions like child custody, child support, or spousal support. However, your state’s equitable distribution laws implicate child custody factors.
Long Term Vs. Short Term Marriages for division
Often, married couples who divorce later in life fall into one of these categories:
- A long-term marriage duration where nearly all property is community property.
- In a shorter-term marriage, one spouse has considerable separate property assets, and there may be little or no community property.
Courts tend to split the community property equally to ensure that spouses are on substantially similar stability at the time of divorce. Moreover, structure an award to one spouse to account for substantial separate properties belonging to the other spouse.
For example, suppose one spouse has substantial separate property assets. In that case, the court may award more community assets to the other spouse to reach an equitable division.
The longer the marriage duration, the more inclined a court will be to distribute separate property.
Tips About Asset Division During Divorce
If you are in the center of a divorce, you may face the task of dividing your shared assets between yourself and your partner. However, in most divorce cases, the mutual property gets divided equally between both parties. Although there are some exclusions, you may want to ask your lawyer about the division of assets. The followings are some guidelines to help you with asset division during a divorce:
Categorize your property
You would sort through all of the property that you own and categorize it as either community property or separate property. Therefore, the items classified as community property are the assets you must share between yourself and your ex-partner.
However, in most cases, classified assets as the separate property will be allowed to remain with the partner who can prove individual ownership.
Decide which items you would like to have
While considering the division of assets in divorce proceedings, you should consider which items you want to keep, are willing to compromise on, and do not desire to possess. However, sorting your things out this way can make property division much easier. Some items you do not want are items your partner wants to keep.
For example, your partner may want to keep the extensive sound system you own together, but you may want to eliminate it. In amicable circumstances, it is easy to decide who these items belong, meaning you will only need to negotiate over a much smaller pool of items.
Value the remaining items
Putting a financial value on the remaining items can help you see how much these shared assets are worth. So, it can help during the negotiation process, as it allows both partners to consider the value of the items they have or want.
While some people are happy to divide their possessions without the assistance of a lawyer, divorce lawyers can help facilitate the negotiation process. However, several lawyers will begin by suggesting a complete fifty-fifty division of assets. Some people may offer their partner a higher percentage in exchange for specific items they want.
Sell property if needed.
The shared home is one of the most challenging things to allocate in a property division battle. First, in some circumstances, it is necessary to sell the house. Then, the couple evenly distributes the revenue generated from the home sale between both parties.
Two essential considerations when dividing marital assets
The division of assets in divorce processes is a crucial part. Moreover, making the right decision requires attention, time, money, and effort. It is significant, especially in a long-term marriage, that you have responsibilities for children and other financial needs.
The welfare of the children
Where there are dependent kids, it is the first consideration when deciding how the division of the marital assets happens in a divorce. First, however, it means providing a home for their children. Where purchases are narrow, it usually means that the children’s carer receives most or all of the liquid assets.
It is suitable for children’s safe future. However, it does not mean that the law overlooks or ignores the other parent’s needs. So, the outcome will seek to balance both parties’ financial needs with the available resources with arrangements for the children’s financial needs.
Parties’ financial desires, obligations, and responsibilities
It is necessary to look at each party’s requirements regarding income and capital. Moreover, it will include the re-housing desires of the parties. Finally, both parties would provide a roof over their heads, depending on the children’s carer.
Another consideration is; that they must live together or be together to pay their mortgage capacity to raise or borrow money. Therefore, the parties’ current and future income needs must get examined. Moreover, in Court proceedings, the parties must prepare a breakdown, approximating how much they will require to meet all of their expenses on a weekly or monthly basis.