Although everyone hopes for a storybook marriage that lasts forever, divorce is actually very common in our culture. Beyond the emotional toll it takes, one of the most challenging aspects of divorce is deciding how to untangle the financial life you shared together. This becomes even more difficult when communication breaks down. The following article is a look at some factors that affect the division of assets in divorce.
1) Income Contribution
Who is the higher earner in your marriage? This can be one of the main factors that influences the distribution of assets in divorce. Although, don’t forget that debt is part of the financial equation, too, and must also be divided. Any debt that is acquired during the marriage must be shared fairly, no matter who charged the credit cards, or took out the student loans, etc. Contribution within a marriage takes many forms, such as who earns more, who does the cooking and cleaning and other household chores, or who cares for the children. All of these things should be taken into consideration when determining how assets are divided in divorce.
2) How Long Were You Married?
The number of years you were married is taken into consideration as well when a court needs to make decisions. If the couple has been together for a long time, it will be a different outcome than if the marriage only lasted a couple years. Ideally, both parties will maintain their standard of living after the divorce is finalized.
3) Fair Asset Distribution in Divorce
Typically, all assets accumulated during the marriage belong to both spouses. Although, there may be some instances when this isn’t the case. Unfortunately, it’s rarely as simple as dividing all debts and assets down the middle.
4) Prenuptial Agreement
For those with a legally binding prenuptial agreement in place, it may be easier to settle how assets are divided. It can be negative or positive depending on the terms of the agreement. A prenuptial agreement that can prevent you from getting your fair share of assets from the marital property.
5) Determining Property Value
It’s up to you and your former partner to determine the monetary value of everything you share ownership of. High-value assets may need to be appraised by a professional, especially if you own valuable assets like antiques, art, or real estate.
In some cases, it’s a good idea to have a formal assessment, so you can determine what’s fair. This extra step can help in setting expectations regarding how much money you’re entitled to receive if the property is sold, or what it would cost one spouse to buy out the other’s share.
Legal Advice
The division of assets in divorce is one of the more complex aspects of moving on with your life as a single person. In fact, money is one of the top things married couples argue about. So, it only makes sense that financial strife often carries into divorce. At Whipple, Mercado & Associates, LLP, we’re here to help you through this trying process. Schedule a free consultation with us today, or contact us by phone at (925) 344-5050.