Divorce is currently not a surprising thing to happen to married couples. You could be feeling the need to end your marriage with your spouse after being together for some time. This may be due to constant family fights or lifestyle issues. This process of separation could become complicated more so if there are considerable assets like rental property, houses, deferred compensation, retirement and pension plans among others involved. Should you find yourself in this situation, here are a few things you should know.
Divide and Divorce: Do You Know What to Do When There Are Considerable Assets Involved?
Understand which assets will be best for you
Don’t base your judgment on their current dollar but the asset’s potential for short- and long-term financial security. This is very important considering the fact that you will need financial security 10 or 20 years from now. And how will you be able to discern this? Well, understand each asset thoroughly – the tax implications associated with selling it, its cost basis, and its liquidity.
Understand the difference between separate and marital property
This is critically important for you to know, and is easily confused. Separate property is inclusive of inheritance you received either before or after the marriage, any property you owned prior to the marriage, the payment you received for pain and suffering in a personal injury judgment, what you agree on to exclude, and any gift that you received from the third party among others. Any other property that you acquired during your marriage is a marital property regardless of who owns it or how it’s titled. There’s more to this. Looking for divorce law experts will help you make informed legal decisions especially with divorce involving high assets.
Understand equitable distribution concept
This concept has, over time, confused many. Some take it to mean split down the middle, which is very wrong. It rather means fair distribution, based on such factors like earning power, contributions of each, health, and your future financial needs. Divorce law categorizes equitable distribution into unitary and dual classification. In unitary classification, all property is considered one regardless of the mode it was acquired and for dual classification, the property will be either separate or marital.
Try to agree on your own
Proper communication and understanding can be a stressful thing to go by during the divorce. But if it will be possible to sit down and agree on the property sharing where each party will not complain, it will be a good thing. But if you experience hardship understanding each other and who to go with what and not what property, seeking legal services will be the only option. The court will take into account a variety of factors before deciding on how you will share the property.
Divorce is not an easy process especially when it comes to the division of property. It gets complicated even more when considerable assets are involved. This calls for fairness, openness, and honesty with your partner during the process. Try to agree on the property sharing and settle on your own without mediator’s or court’s help. You have been together all this while and you two understand your property very well. You know how each was obtained so it shouldn’t be a big issue. Only seek third party involvement when necessary. Good luck!