Divorce

When Do You Have to Split Assets in a Divorce?

Proceeding to property division hands the judge a card of the unknown. The reason for the division can be an alarming factor. Sometimes it is not known if anyone is hiding assets or not. The trust held by your partner can be eroded when there is a need or suspicion of such activities.

In a divorce, usually the division of assets occurs when the assets are considered to be marital property, which is acquired during the marriage. Here are key points on when assets have to be split in a divorce:

Equitable Distribution States: In equitable distribution states, marital assets acquired during the marital period, or from on commencement of divorce proceedings, are subject to division as the divorce proceedings progress. Like an equal distribution, equitable distribution does not envisage same division but encloses justified sharing of assets according to residence, financial contributions and personal needs.

Community Property States: In community property states, everything that is owned by the couple during the marriage is counted as community property and thus is divided equally between the spouses upon divorce. The community of property states is a group of states; which contains the states of California, Texas, Arizona and others, where the assets gathered during the marriage are jointly owned by both spouses.

Commingling of Assets: For instance, when there is a commingling of separate property, like assets that were possessed before the marriage or inheritances, or when that property is used for the benefit of the marriage, it can then be considered to be part of the shared assets and be subject for division. Mixing up can be a cause of ambiguities in the matters of separation and joint property, making the division of assets very difficult.

Legal Agreements: Thus, if spouses have signed a prenuptial or postnuptial agreement that specifies how assets will be distributed in case of divorce, the terms of these agreements will be the ones that will determine the asset division process. Among these agreements are some which will comprise the assets which would be untied and still remain the property of each spouse, with the property of the marriage being divided appropriately.

Court Orders: If spouses fail to reach that unified agreement on property division, the court is entitled to determine how this should be done through an issued court order. The court takes into account a lot of factors such as the financial situation of each spouse, the contributions to the marriage and the future needs to decide what is a fair division of the assets.

One of the most important aspects of the process of divorce is the manner of division of the assets that must be done in a divorce not only important but essential for people who are going through this process. Through an understanding of the rules and principles governing asset division, the conflict can be ratified so that partners might walk away in a just and equitable direction.

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