How Does Division of Assets Work?
When it comes to the division of assets in a divorce, there are several different approaches that can be taken. Depending on the state you live in, the laws governing asset distribution may differ. Generally speaking, however, courts will divide assets based on either “equitable distribution” or “community property.”
Equitable Distribution
Equitable distribution is a state-mandated approach to asset division that uses a variety of factors to determine an equitable, or fair, division of assets. This approach is used in most states and takes into account the length of the marriage, each spouse’s economic situation prior to the divorce, and their earning potential after it. In this approach, the court also examines other factors such as age, health condition, debts incurred during the marriage, and any marital misconduct that may have occurred. The court will then use all of these factors to decide on a fair division of assets.
Community Property
Community property is an approach used in nine states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin) to divide assets accumulated during the marriage. In this approach, the court presumes that all assets accumulated during the marriage are owned equally by both spouses–even if only one spouse contributed financially. In community property states, courts generally use a 50-50 split of assets for each spouse.
In both equitable distribution and community property approaches, courts may also award spousal support to one party if needed. This is money paid by one spouse to the other after the divorce that helps provide financial support. The amount and duration of spousal support will vary depending on a variety of factors, such as each party’s income and earning potential, their ability to gain employment, and any assets divided during the divorce proceedings.
Find a Qualified Attorney
Division of assets in a divorce can be a complex process, so it is important to find an experienced attorney who can ensure that your interests are fully represented. An attorney can assist with the negotiation process and help you understand all the legal implications of any decisions made during the proceedings. Additionally, they will be able to answer questions and provide advice on how best to proceed with the division of assets. It is important to take the time to find a qualified attorney who is familiar with your state’s laws and can provide guidance throughout the process. Doing so can help ensure that you receive a fair and equitable outcome when it comes to dividing assets in a divorce.
Final Considerations
When it comes to dividing assets in a divorce, it’s important to remember that each situation is unique. As such, it’s important to take into account the specifics of your situation and consult with a qualified attorney who can provide advice on how best to proceed. Additionally, it’s wise to consider all other factors that could impact the asset division process such as taxation implications. Taking the time to thoroughly evaluate each option available can help ensure that you receive a fair and equitable outcome when it comes to the division of assets. By carefully considering all options and consulting with a qualified attorney, you can help ensure that your interests are fully represented throughout this process.
