When it comes to dividing assets during a divorce there are various concerns you will need to deal with when it comes to dividing the marital property.
What State do you Live in?
State laws govern how the marital property will be divided. You will need to check with an attorney to see if you live in an equitable distribution state or a community property state.
There are four other steps that need to be considered when diving marital property:
- Identify the assets owned by you and your spouse
- Categorize all assets as marital or non-marital property
- A value will need to be assigned to the assets
- Devise a plan for the division of assets that is in accordance with state laws
No Fault Divorce Laws
Though most states separate the division of marital property from grounds for divorce due to no fault divorce laws, most states do consider any financial misconduct when it comes to dividing marital property. What this means is if you or your spouse has foolishly spent money then you or your spouse will most likely be penalized when it comes to dividing marital property.
Separate Join Financial Obligations
If you feel the division of marital assets might be a contentious point between you are your spouse, you might want to consider separating financial obligations prior to starting the divorce process. Marital property does not only mean furniture and household items, but also joint credit accounts. Each spouse should have access to a complete set of all financial documents. You’ll also want to close all joint credit card accounts. If you’re not able to fully separate the accounts, draft a formal written agreement outlining the activity on the remaining joint accounts. Freeze any investment assets – this will ensure neither spouse misuses funds until everything has been agreed upon. You might also want to consider changing the title on your home to read “tenants in common” until the final agreement regarding marital property has been decided upon.
For advice on dividing marital property, you need the expert law firm of Divorce Law LA. Schedule a consultation today.
Source: Divorcesupport.com, Issues Surrounding the Division of Marital Property, 2014
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