A Comprehensive Guide on Splitting Your Marital Assets
Going through divorce or separation can be difficult, and will require a multitude of important changes and decisions to be made. When a couple decides to split up, they want to move forward with their lives and separate. However, as soon as the decision is made to separate, many issues must be discussed and resolved. One of these issues is how to split up marital assets.
In this article, samueltiptonlaw.com provides a guide that covers all the different ways that you can split your marital property. This guide will help you understand how asset division works and what factors are important when deciding what each person gets after divorce.
Equitable Distribution
Equitable distribution is a term that refers to how assets are divided between two parties during a divorce. It is also known as equitable distribution of property and is used in both community property states and common law states. Equitable distribution ensures that each spouse receives their fair share of the marital wealth, including assets, debt, and liabilities.
Equitable distribution can be achieved through several different methods. One method is a 50/50 split, which means the parties have equal shares of all property acquired during the marriage.
Another method is an equalization payment, which means one party receives more than half of all marital assets and then pays their spouse an equal amount from their resources.
The third method is a division by agreement between both spouses or by court order after hearing testimony from both sides and any other evidence presented by either party involved in this process but not limited to financial records such as tax returns or bank statements.
Marital Estate Contribution
Marital estate contribution as a way of splitting your matrimonial assets is a process used to divide property and debts that you and your spouse have acquired during your marriage. This process involves calculating the value of all the assets and debts and identifying any remaining obligations that must be paid off. The value of each item is calculated by a neutral third party, who will ensure that both parties have fair representation.
Both parties must agree on how their assets will be divided for this method to work. If one spouse wants to keep more than half of the marital property and debt, they may request additional money from the other party to compensate them for their share. If both spouses agree on how everything should be divided up, they can split up their property and debt using this method.
Community Property
Community property is a legal concept from Spanish law used in many states throughout the United States, including California. It refers to assets owned by both spouses equally, regardless of who bought them or who paid off any debts. This includes real estate, bank accounts, vehicles, and other personal property such as clothing and jewelry.
There are three ways that community property can be split:
Equally: This is the most common way to divide property in a divorce. If you choose this option, each party gets half of all assets and debts.
As a percentage of their income: The judge will look at each spouse’s income, time spent working, childcare costs, and other factors to determine the percentage of each person’s income they should receive.
Per capita: This method is less common than the others but still has its place in certain situations. For example, if one spouse has significantly more debt than the other spouse or has been out of work for a long time due to injury or illness (and thus cannot contribute much financially). Under this method, each party receives an equal share of all marital property, even though one may have contributed more financially than the other during their marriage.
Separate Property
Separate property is any property you acquire before your marriage or during your marriage, but without the help of your spouse. It includes money or other assets inherited by one spouse before or during the marriage, and any gifts received from someone other than your spouse during the marriage.
Separate property is not subject to division during divorce proceedings. However, suppose a spouse uses an individual property to purchase marital assets during the marriage. In that case, that portion of the purchase may be considered marital property and subject to division by the court.
Additionally, suppose one spouse has used the separate property to improve or increase another marital asset without reimbursement from their partner. In that case, that portion of the improvement may be considered marital property or marital debt.
Tips for Splitting Your Marital Assets After Divorce
Get legal advice: Before making any decisions, talk to an attorney experienced in divorce and estate law. They can tell you what the law says about how your assets should be divided and help you understand the reasoning behind those laws.
Consider mediation: Mediation is an alternative to court-ordered litigation. It involves both parties going before a neutral third party who helps them work out an agreement they both agree on before submitting it to the court for approval.
Be fair and considerate: It may be tempting to get the most significant piece of the pie, but it’s important to remember that divorcing is a complex, emotional process. It’s not about winning or losing—it’s about protecting your children and moving forward as a family.
Keep your own counsel: Don’t share details about the divorce with anyone outside your lawyer until the process is over; if you do, it could jeopardize any settlement deal between both parties involved.
Divorces don’t always have to be a mess. It is important to remember that there is no one size fits all approach to divorce, but you should always consider your circumstances and seek a lawyer to help you find the right solution for your unique case. Make sure you have a solid plan for splitting your marital assets and ensuring that all parties are satisfied. While certainly an involved process, seeking counsel is always the best advice.
