How to Divide Property and Assets in a Divorce
One of the biggest details to work through in a divorce is how assets and property will be divided between spouses. Some couples are able to work through this step on their own, but other people benefit from legal support to ensure a fair division of assets.
Community Property: What You Need to Know
The first step for property division is to know the definition of “community property” so you know what needs to be divided. One misunderstanding is that people assume that community property is anything owned by you and your spouse. But this definition isn’t quite right.
The definition of community property includes anything you acquired together – during the marriage. There are a few exceptions, such as inheritances, gifts, and even certain types of real estate property if you signed a quit claim.
Anything that you had before the marriage falls in the category of “separate property” and doesn’t count in divorce property division. It was yours from the beginning, so you don’t need to divide it.
Community property includes anything where you and your spouse have an equal interest in the value. Things like cars, houses, and furniture can’t be cut in half – which is why we talk about it in terms of “value.” The value is determined, then added to the Divorce Balance Sheet. Other assets, such as bank accounts, cash, and retirement, can be divided in half as well.
How to Handle Debt in Divorce
Debt can be a hot topic in divorce proceedings. This liability is also divided if the debt was acquired during the marriage, which means that both people are responsible for the value of the debt. It doesn’t matter if the debt was only in one name.
Divorce Balance Sheet to Calculate Value
Every asset and liability can be added to a divorce value sheet. In the end, you should have an equal amount of value for both spouses. This process is known as a default judgment, meaning neither spouse is contesting the divorce. But some couples also come to a “Fair and Equitable” agreement for property and debt division, which could be unbalanced (but both people agree to the terms).
Talk to the Legal Experts
If you’ve come to an agreement with your spouse that ensures a fair and equitable division, talk to New Tomorrow Law. We can help bring your case to a quick and amicable resolution through our 30-Day Divorce System. Call today to schedule a Discovery Call.
