On behalf of The Law Office of Wickersham and Bowers posted in Family Law on Wednesday March 15th, 2023.
Divorce is a complex process that can be emotionally and financially draining. One of the most complex aspects of divorce is the division of property. When a couple decides to end their relationship and get a divorce, they must determine how their property will be divided. This can be a contentious and complicated process, but it is important to understand the basics of property division to ensure a fair and equitable outcome.
Steps to Follow for Property Division
The first step in property division is to determine what property is considered marital property and what is separate property. The property you acquire during marriage is marital property, including assets such as homes, cars, bank accounts, and retirement accounts. Separate property is a property that was acquired before the marriage or received as a gift or inheritance during the marriage.
Once the property is classified, the next step is to determine the value of the assets. This can be done through appraisals, market research, or other methods. It is essential to have accurate valuations of all assets to ensure an equitable division of property.
After the value of the assets is determined, the next step is to divide the property. There are several methods for dividing property, including selling assets and dividing the proceeds, dividing assets based on their value, or dividing assets based on need. The process of division will depend on the specific circumstances of each case.
It is important to note that property division is not limited to tangible assets. Intangible assets such as intellectual property, patents, and copyrights can also be subject to division. Additionally, a debt must also be considered in the property division. Debts incurred during the marriage, such as mortgages and credit card debt, must be divided just like assets.
In some instances, couples are able to agree on property division without going to court, such an arrangement is known as a settlement agreement, and it can save time and money. However, it is essential to consult with an attorney before entering into a settlement agreement to ensure that it is fair and equitable.