How Are Marital Assets Divided in a Divorce?
Some important factors come into play when dividing marital assets. It’s always in your best interest to understand how it all works. The last thing you want to do is leave everything up to chance and have the court decide, as that could cause bad blood between both parties.
No matter the reasons for your divorce, you might wonder about the division of marital assets. You may own a house, have children, or run a business together. How does the law decide the break-up of these things?
Keep reading to find our answers to these questions and understand what you can do with this process.
Identifying Marital Assets
The first step in dividing marital assets is determining what constitutes marital property. Generally, any assets acquired during the marriage are real estate, investments, vehicles, bank accounts, and debts. However, assets acquired before the marriage, inheritances, or gifts received by one spouse may be classified as separate property.
Equitable Distribution
Equitable distribution does not necessarily mean an equal 50/50 split. It requires to have a fair and just division based on various factors. Courts consider factors such as the length of the marriage and each spouse’s contribution to the acquisition of assets.
After the divorce, they also consider each spouse’s earning capacity and financial needs. This review of the divorce process is essential for understanding how marital assets are divided in a divorce.
Role of Attorney
A skilled divorce attorney can provide invaluable guidance, ensuring your rights are protected and you receive a fair share of the marital assets. They will analyze the unique circumstances of your case. They will also gather the necessary evidence and advocate on your behalf during negotiations or courtroom proceedings.
Valuation of Assets
Accurately valuing and dividing assets is crucial for a fair division. A valuation of assets can be challenging, particularly for assets with fluctuating or hidden values. The knowledge and experience of a divorce attorney can help ensure that assets are properly assessed and accounted for during the division process.
Distribution Methods
Courts have discretion in determining the most appropriate method of asset distribution. Some common approaches include direct division, offset, and sale and division methods.
The most common method is direct division. In this method, the division of assets is between the spouses. Each receives an equitable portion based on their contribution and needs.
The second method is offset. One spouse may receive a larger share of certain assets while compensating the other spouse with different assets or monetary payments.
Lastly, the sale and division method. Certain assets, such as real estate or business interests, may be sold, and the proceeds divided between the spouses.
Understanding the Division of Marital Assets
In most divorce cases, marital assets are split fairly and equitably. No matter the situation, knowing exactly what rights you have and the coverage of your assets is essential. It is best to consult a family law attorney to protect all parties in the divorce proceedings.
Take steps to protect your finances to move forward in your new life. Check out the rest of our site and read our other blogs for more important legal news.
