Dividing up the assets in a divorce can be one of the most challenging aspects to resolve. The pain of the separation is likely already taking a toll on your emotions. Now, you’re faced with the need to finalize the process. If you don’t educate yourself about the system and how everything works, you risk losing valuable property.
Sometimes, dividing the assets can be straightforward when both parties agree. Other times, you may need to fight for every penny that belongs to you. Much depends on your ex-spouse—he or she may want to settle things quickly and painlessly, or they may try to keep as much as possible.
Understanding Marital Property
When it comes to dividing assets, it’s crucial to understand that only marital property can be divided. This refers to anything you and your ex-spouse acquired during the marriage. These assets include the family home, savings plans, retirement funds, cars, and more. In marriage, you share each other’s gains and losses. However, anything your partner owned before the marriage usually remains their property.
If you’ve been married for a short time, the process may be relatively simple. However, if you’ve been married for 10 or more years, you’ll need to examine what you owned prior to the marriage and what qualifies as marital property. Sometimes, there may not be much to divide, but there could be significant ambiguity around when something was purchased, who it belongs to, and whether or not it should be considered marital property.
Advice Online, a British financial website, emphasizes that planning is key to asset and divorce settlements. To navigate the process properly, you should work closely with an expert. There are several steps you can take to ensure you’re not left with less than you deserve when dividing the assets. A professional can help you:
- Make a detailed list of what you own, what you owe, and what you earn.
- Consider every financial arrangement you and your ex-spouse had together.
- Stop all joint credit cards and store cards immediately to prevent your ex-spouse from withdrawing money without your consent.
- Remember that a joint loan holds both you and your partner liable.
- Review any insurance policies that were in place.
- Assign any joint mortgage policy to the partner who is taking it over.
- Ensure that the title deeds to your property are registered in a way that prevents your ex-spouse from selling the home or obtaining a mortgage without your consent.
- Review your will to ensure your ex-spouse will be treated as though they passed away on the day of the divorce.
Depending on where you live, you may not be entitled to half of the marital assets in a divorce. However, the more you know about the laws in your area, the more likely you are to get a fair settlement.
Always seek advice if you’re unsure about the rules. You can either consult a knowledgeable friend or hire a lawyer. If you ever feel that you’re being pressured into signing something unfair, make sure to take every step necessary to protect your assets. Though it’s a challenging process, you must carefully analyze every financial aspect of your marriage to ensure an equitable distribution.
What is Equitable Distribution?
According to FreeAdvice.com, equitable distribution is an alternative to the 50/50 split. Instead of dividing everything equally, this system considers both present and future marital property to ensure that both partners can maintain the lifestyle they’ve grown accustomed to.
EqualityInMarriage.org explains that equitable distribution takes into account factors like the length of the marriage, what each person brought into it, how much each person can earn, responsibilities for children, retraining, tax consequences, and debt. If you signed a marital agreement, it will give you more control over how your assets are divided.
Everything acquired during the marriage is subject to division, regardless of whose name or money was used to purchase the asset. However, you can protect your assets by proving what belongs to you and preventing your ex-spouse from unfairly taking valuable property during the divorce process.
Both partners, regardless of the circumstances, are responsible for the debts incurred together during the marriage.
Dividing the Assets Smoothly
Dividing assets doesn’t have to be a complicated or contentious process. If both you and your ex-spouse are upfront and honest, the division will be much easier. The biggest challenge arises when one spouse tries to hide assets or take more than they are entitled to. If you can work together to divide everything fairly, it will save you a lot of money that might otherwise go to lawyers.
While settling out of court is often the easier route, the legal system exists to ensure that you are treated fairly. If you believe your ex-spouse is attempting to take advantage of you, the court can help with the division of assets. It may take more time, but it will result in a fair decision from a judge.
