How to Divide Assets in a Divorce ?
How to Divide Assets in a Divorce ?
In a divorce, “ours” splits into “his” and “hers”. While you can easily agree not to live together, what will happen to the things you have worked so hard to acquire ?
One of the most difficult tasks faced by divorcing couples in a divorce is dividing the marital assets.
But if your soon-to-be ex can accept dividing some of the most commonly disputed assets, you may enable the divorce go a little more smoothly.
All is honest but not equal in love and divorce.
All assets must be divided in a way that is satisfactory to both parties,before a divorce is granted, Because dividing a home, vehicles, securities, valuable collectibles, retirement benefits and household items are where couples run into difficulty.
It is vital to understand your state’s exact laws on assets in a divorce, as these laws vary from state to state.
For example, in community property states, spouses keep ownership of anything owned before marriage including an inheritance. While all states have adopted regulations that apply to the fair distribution of marital property, remember that, fair distribution may not always be equal.
Make a List, Check it Twice
In a pending divorce the first procedure is to make a complete list of all assets.
The easiest option for spouses is to make a list together that is ethical and legal.
Items that must be listed should include the home or any joint property (a vacation home, lake cabin land etc), all vehicles, bank accounts including full balances, securities (stocks, bonds, money market account, CD’s ), valuable collectibles (a restored classic vehicle, antique collections, coin collections), household items such as furniture and appliances, and retirement plans. Joint owned items such as boats or other recreational vehicles might also include.
If possible, play nice.
If spouses can make a list in an courteous way, they can avoid the expensive and slow process in which a court determines the distribution of assets. To negotiate an agreement, spouses often communicate via their individual attorneys.
A property division agreement can be signed and a simple divorce granted, if the spouses can come to agreement together or with the assistance of attorneys.
When spouses are not in agreement, disputes over distribution of property can arise.
At that time, a third party is essential to be brought in to come to an agreement.
A divorce attorneys can handle the task or divorce mediators can be hired Attorneys can question the spouses, to determine what property is involved. To determine ownership, or make a request for a formal disclosure, request documents (such as deeds), and take depositions from others.
While formal disclosures are complete, it takes time and can slow a divorce.
Todays among all, ninety percent of divorces granted in the United States are settled without a trial through the use of property division agreement.
Some couples may require some negotiation to reach in to a final agreement but, this is the most efficient and inexpensive route to setting assets.
When resolving distribution of property issues several key points must be considered..
How to Divide House and Car ?
Deciding which spouse will reserve the family home is also a major issue.
Judges will often grant the home to the parent with primary custody of the children if children are involved, whereas it is not guarantee that the home will be given to the spouse who has primary physical custody.
In many divorce proceedings vehicles are another area of dispute. Generally vehicles and other property are not granted to the spouse who holds sole title. Even a vehicle owned by only a spouse may still be community or marital property.
The first thumb rule in deciding vehicle distribution is to know the value/price of the vehicle. This can be found in automotive industry Blue Books or visiting several reputable used car dealers.
Leased vehicles may have little value
Household items along with valuable collectibles should be split in agreement between the spouses. Although the debate over who may receive a piece of antique furniture may seem violate to the parties involved, it is best for the interests of both spouses to determine division without outside intervention.
The Hardest Splits , Retirement Benefits and Family Businesses
Retirement benefits are another source of dispute in many divorces. Most of the working spouses trust that the ownership of retirement benefits and plans belong to the individual, but this is not always the case.
The retirement benefits may be considered as marital property and the other spouse may be authorized to some portion of payment or value. If retirement plan is involved, it is best to ask attorney to include a QDRO (Qualified Domastic Relations Order) document which will help to determine whom receives what from the plan.
Possibly the most complex property division issues come from family must be considered, both at present and for future profit.
The small businesses that are jointly owned by two spouses can be divided without dispute. One spouse receives the business but the other receives financial remuneration.
Payments from a co-owned business can be made over a specified period of time to ensure that both spouses gain from any financial success.
After a divorce some spouses may be able to remain bisiness partners but this is not common.
Agreements over property division can speed the divorce process and keep communication lines open, vital nevessity for couples with shared custody of minor children. The key to friendly division of assets lies in cooperation and willingness to be fair. To protect all parties, specific information within each state should be gained from a practicing attorney.
Although your marital property will not survive a divorce complete, it won’t be destroyed either.