Hundreds of issues come up during divorce, many of which have to do with property settlement. The division of real property and other assets is often among the most contested of divorce issues, and even in an amicable divorce settlement, asset division can be painful and difficult.
Here, we’ll provide a brief overview of things to ask for in a divorce settlement, along with some tips for dealing with controversial issues.
The first step in preparing for a divorce financial settlement is to take a little time to familiarize yourself with local laws governing the division of property and assets. In most places, laws are based on one of two division methods: equitable property division or community property division.
Equitable property division laws allow the judicial system to determine how different assets are divided, with the aim of a completely fair divorce settlement in mind. A variety of factors go into determining how this settlement is made, and different jurisdictions utilize varying formulas to determine how assets are divided.
Community property division laws were created in order to divide property and assets equally between spouses. In this type of divorce property settlement, the goal is to award each party with precisely half the total asset value minus the total amount of all debts. In community property division, everything – homes, bank accounts, investments, vehicles, and valuable personal property such as jewelry – is split right down the middle. All debts are treated the same way, being divided 50/50 between the parties.
When seeking divorce settlement advice, learn all you can about local property division laws. If possible, consider coming to a mutual agreement concerning property division. If you can do this, both you and your spouse are likely to benefit, regardless of which type of property division laws apply in your area.
Despite the emotional issues surrounding divorce, the process is mainly a financial transaction. Depending on the amount of property to be divided, this transaction can be among the largest of your life. Among the power struggles, the feelings of betrayal and helplessness, and the high emotions lie devastating financial pitfalls. Use the following divorce settlement tips to make the process a little less deadly.
Being prepared, focused, and well-informed doesn’t take the sting out of separation, but it does make divorce settlement go more smoothly.