Divorces are never easy and can often get quite messy. If you’re going through a divorce, it’s important you find an experienced divorce lawyer. While your lawyer may walk you through the entire process, asset division is something you should know about ahead of time. Dividing assets between two people can be very complex, so this article is going to cover the basics.
First, what is community property and what is non-community property? Community property will include all earnings during marriage and everything bought with those earnings. Furthermore, all debts sustained during marriage also become community debts. On the other hand, the separate property of one of the spouses will include things like gifts and inheritances as well as the benefits of any pensions. Generally, anything purchased with non-communal earnings will remain with the person who bought them.
Where it really gets tricky is deciding what happens to property that was purchased with both separate and community earnings. Generally, since it is considered both community and separate property, it becomes community property.
When it comes to retirement benefits, many people assume the benefits should belong to the individual. However, this is not always the case. These retirement benefits may be considered marital property, meaning the other spouse may be able to receive part of the payment. In this case, it’s best to consult a divorce law firm to determine the best course of action to take.
Family-owned businesses are usually one of the most difficult assets to divide. This is because it’s not only the current value of the business that needs to be considered, but the future value as well. The most popular action of dividing a family-owned business includes one spouse buying out the half their spouse ends, meaning the other spouse gets their money and the business remains with one spouse. Additional options may include dividing various aspects of the business among the spouses.
Dividing assets is no easy task. However, seeing as how fewer than one in four Americans has enough money saved up to cover at least six months of expenses, it’s important to ensure assets are divided as fairly as possible to avoid financial disturbance. Couples going through a divorce should try to remain as civil as possible, especially if there are children involved. Fortunately, working with a reputable divorce lawyer can make the process go as smoothly as possible.