Property division is one of the most contentious elements of a divorce. Particularly, the call on the belongings deed does not continually dictate which partner gets to retain the asset, which is a big surprise to many couples. What matters more is whether or not the belongings were considered separate or marital assets and if the couple resides in an area that follows the “equitable distribution” or “community property” version. These factors will determine who gets what after the divorce.
Marital Property vs. Separate Property: What Are They?
All money and assets obtained by either spouse while married is considered marital property. (Before a separation or divorce is considered final in some states, but not in others.)
Assets that satisfy the “when acquired” requirement may be considered marital property in some states but not others:
- your principal residence, secondary residences, and any other real estate holdings (including real estate investment and business properties)
- financial assets (including savings, bonds, and stocks),
- business interests and partnerships, and employee benefits (including pensions, profit-sharing plans, stock options, and other retirement and employment-related programs).
- everything from the house, including clothes, furniture, jewelry, and artwork; things from the car, like a plane or boat; life insurance policies, and even lottery winnings (as the rewards were paid out after the marriage, but the tickets were bought during the marriage).
It isn’t necessarily important to have the deed to the property. Thus, even if you open a bank account in your sole name during your marriage to hold your earnings, that won’t prevent the asset from being considered marital property.
One spouse is the sole owner of separate property. while each state has its very own set of rules, there are some types of non-public belongings that can be relevant everywhere. Below are some examples:
- Property that one spouse possessed prior to marriage
- Assets that one spouse received as a gift or inheritance
- Assets that the spouses have mutually agreed to keep separate, typically through a legally binding prenuptial or postnuptial agreement
- A portion of certain personal injury awards intended to compensate for the injured spouse’s emotional distress rather than financial losses incurred during the marriage.
Obtaining Assistance with Divorce Property Division
The stress and financial burden, especially in terms of legal bills, that a divorce can bring increases in direct proportion to the number of arguments that arise during the process. But there are other options than taking your property division to trial and having a judge decide for you if you and your husband can’t come to an agreement.
An uncontested DIY divorce, in which neither party hires a lawyer, is possible for many couples who reach an agreement before the process begins. However, a divorce lawyer is necessary in the following cases:
- notwithstanding mediation efforts, you and your partner nevertheless can’t agree on the way to divide your property
- your property are big and complicated, along with a circle of relatives commercial enterprise
- you think that your partner is attempting to hide belongings.
Final Thought
Understanding that there is more than one way to choose a legal professional. If you want assistance drafting or reviewing a settlement, for instance, it may be wise to hire family lawyers perth on a consulting basis. Certain aspects of the assets department, such as dividing retirement savings in a divorce, may also necessitate the help of a professional.
