A bad marriage is certainly a worse choice to live in, where there is hardly any harmony and mutual love to carry on with. But then again, an end of a marriage in divorce, is filled with mostly unpleasant choices and some tough discussions to be had. These tough and regretful choices include concerns evaluating the fair distribution of property that was once shared mutually throughout the relationship.
When it comes to dividing up the assets and obligations acquired throughout the marriage, it’s one of the difficulties that divorcing spouses must deal with. To carry on such a procedure, the parting couple must seek the assistance of lawyers or a mediator like a divorce attorney Montgomery al, to negotiate the settlement.
Such professional attorneys and lawyers have the insight to guide and help clients navigate the division of marital property. They also ensure that it must be equitable or fair, according to the law.
Legal Steps Involved In the Process Of Property Division In Divorce
On matters like the division of possessions, property, and debts, some couples are more amenable to agreement than others. Spouses who have yet to resolve their property issues will, therefore, turn to the courts to ask an arbitrator or a judge to render a decision. You should learn more about how couples must fairly divide their assets to achieve a reasonable financial conclusion, as well as how to safeguard their valuable possessions or other personal assets.
There are three crucial components to this process:
- Separating among marital and independent property (or debts)
- Establishing the property’s value
- Managing the distribution of marital possessions
Factors Deciding How To Divide Up The Property
The state where you currently live
A pretty pivotal factor while assessing the distribution of property among the couple after the divorce is decided by the state in which you are living in; since, When it comes to divorce-related financial concerns, each state has its own unique legislation.
A couple may settle a property split with or without legal counsel, intermediation, or civil court intervention. Nonetheless, some divorces, such as high-asset divorces, are financially difficult.
Your rights regarding the distribution of assets and other critical divorce problems can be defended by a divorce attorney, who can also support you during the process.
Speaking of how courts share property, there are two ways: equitable distribution and community property distribution. Similar rules apply to the division of debts as well. The property is divided into the following categories based on where your house is located:
- Community Property States: Some states classify all marital assets as separate or equitably divided assets. During a divorce, separate property is owned by each spouse, although the shared property is generally divided equally.
- Equitable Distribution: In all the remaining states, there is an equitable sharing of marital assets and income that is fair in nature. Several of these states may compel one side to use separate property to ensure that the settlement is fair for both spouses.
All possessions and debts (including shared credit card debt) will be split fairly between you and your spouse. This is not meant to imply that everything has been divided in half. Here is where divorce attorneys shine.
The Kind Of Property You Own
Dividing up the family’s property is a major concern during a divorce. The settlement of the property will typically be regulated by state law. Regardless of whether you live in a separate property state or a communal property state, the division depends on the following:
Separate Property: One spouse is the sole owner of separate property, which includes things you possessed before getting married, gifts or inheritances that were provided to you personally, or the proceeds from a pension that became vested before the marriage.
Examples of separate property include things you owned before getting married, gifts or inheritances which have been given to you specifically, or the proceeds of a pension that vested before the marriage (e.g., the earnings from your job that you deposited into a joint checking account and utilized to settle your marital debts or pay bills).
Community Property: Community Property is almost everything you both earned or acquired during your marriage. In some states, all marital property is categorized as distinct or shared property.
In a divorce, each spouse keeps the separate property, but the communal property is often divided evenly between the couple. In general, anything—like a home—bought using a mix of separate and community cash is regarded as community property.
Dividing Up Property Yourselves
Following are a few measures to get you started if you and your partner decide to try to allocate the property yourself:
List Your Possessions. Make a list of all the things you jointly own while cooperating. Sure again, you are at liberty to take out any items that you and your partner feel have little personal significance.
The Property’s Worth. Each value that exceeds a fixed, specified amount should be subject to agreement. Get a valuation opinion from a reputable independent specialist or expert for any difficult-to-value property, such as a home or company.
Choose The Rational Possessor. Analyze each item on your primary list separately to determine whether there is a good reason for it to belong to one of you over the other. Start with the items that have the most worth, and see how far you can get.
Get The Court’s Consent. If you and your spouse can agree on how to divide the assets you both own together, the court will typically accept your plan. The only exception is if a quasi-party appears to have agreed to take significantly less than half of the property.
Be aware that property division does not always imply equal physical distribution of assets. Instead, the court would award a portion of the property’s entire worth to each spouse. The reasonable criterion for evaluation is based on each case’s unique facts and circumstances; there is no set formula for doing so. Each time a case is heard, the judge will consider many aspects.