What exactly is a division of assets? Here is everything you need to know about this complex factor of divorce and how to handle it best.
Research shows that there has been a 62% increase in loan inquiries related to divorce.
It’s undeniable that going through a divorce can be emotionally and financially challenging, so you want to make it as easy as possible.
But, besides learning to be apart from your significant other, you must also arrange your division of assets as a couple. Now, if you’re wondering, what is division of assets?
Then, don’t worry. You’re not alone.
Most people never think about the division of assets meaning or how it affects your personal belongings, but thankfully this article will explain everything to you.
A Guide to Division of Assets
The term “division of assets” refers to the process when you get divorced and aim to cut all financial ties to your spouse. This can be done through court or outlined in an agreement between a couple.
Even though there are many challenging aspects of getting divorced, dividing assets is arguably one of the most difficult parts.
But, when it comes to money, property, and houses, you want to ensure both people get an equal share of the assets. Thankfully, a divorce attorney can help if you need legal assistance, but there are other things to try.
Research Your State Laws
As everyone lives in different states, the laws around assets meaning, and how they are divided, will differ depending on where you live.
For instance, the 50/50 rule, which means both people in a divorce get equal assets, doesn’t apply in every state. However, this rule isn’t used in separate property, which is often the assets owned before marriage.
Therefore, learning about the differences between marital and separate property when you’re filing for divorce is essential.
Marital and Separate Property
Dividing assets in a divorce means only marital assets are shared between a couple. Marital assets include any money earned during the marriage unless a prenuptial agreement was drafted beforehand.
Whereas separate property is used to describe a property that a spouse owned before getting married or inherited. Determining marital and individual status can be challenging when joint bank accounts are involved.
If shared money was used on mortgages or to make home improvements on inherited property, it makes it harder to distinguish what is marital or separate.
Community Property Division
Another essential part of dividing assets is community property division. The term describes furniture, real estate, brokerage accounts, arts, boats, saving accounts, and other components of your shared finances.
This term can also refer to any outstanding debts and liabilities of a spouse. Some couples will decide to divide these things equally. At the same time, others will choose to allocate certain assets to one spouse.
If one spouse receives an asset of higher value than others, that person will have to pay something called an “equalization.” This is a sum of money that aims to settle the difference in value and equalize assets.
How to Prepare for Division of Assets
Although it might seem overwhelming thinking about how to divide assets and ensure the process is stress-free, you can prepare in advance. Hence, you have all the information, such as property value and separate assets.
Here are some tips to help you prepare for dividing assets.
Make a List
With the right organizational skills, dividing assets after a divorce is simple. The first step is making a list of all your shared and individual investments. Ideally, you can sit with your spouse and discuss all your belongings.
If you have both decided to end the marriage, then there should be no reason that you can’t come to a fair decision.
However, if there are other issues surrounding the divorce and it’s impossible to talk together, you should get a divorce lawyer. That way, you can guarantee that you legally receive your assets to keep.
To help you determine shared property, here are some examples:
- Vacation homes
- Bank accounts
- Valuable collectibles
- Retirement plans
Once you have a list prepared, you should double-check it to ensure you don’t overlook anything during the division of assets with your spouse.
Get the Value of Your Property
Apart from writing a list of your assets, you should also get the value of your property, especially if your home is shared with a spouse.
Usually, you can find this information online. But, if you can’t, you can get an appraiser to inspect and give you the amount your house is worth on the market.
This information will make it easier for you to divide the amount and ensure you have all the details correct. That way, there’s less risk of one spouse getting less than another.
Remain Positive and Open-minded
Concluding the division of assets can be a long and complicated process that frustrates many people. You must try to remain positive with your spouse.
Unfortunately, in some situations, an agreement between a couple and divorce lawyers is not possible. In those circumstances, a third party needs to get involved.
As divorces increase, more cases must go to court because spouses can’t agree. If this happens, you want to have the best legal team on your side.
At the Blattner Family Law Group, we aim to get everything right for our clients. We pay close attention to detail so nothing is missed and our clients get the outcome they desire.
Let us help you through a divorce and secure your more valuable assets.
Hire the Best Lawyer to Help You
You don’t need to go through a divorce alone; our professional lawyers are ready to assist you with dividing assets and ensuring the process goes quickly and efficiently.
The division of assets doesn’t need to drag on for months; with the right people behind you, there is a better chance of getting your assets after divorce.
Are you looking for advice for diving into your assets during a divorce? Then reach out to our team to find out more today.
You can browse our reviews and see how we’ve helped clients previously. And, we can help you too.