When divorcing, marital property is usually divided equally between the spouses, while each spouse keeps their separate property. When the court grants a divorce, the property will be divided equitably (not always equally) between the two spouses. This is decided under the Equitable Distribution Act. During the divorce, both spouses have to report to the court their income and any debts they owe.
In the event of divorce, marital property is usually divided equally between the spouses, while each spouse keeps his or her separate property. The division of property does not necessarily mean a physical division. Instead, the court could award each spouse a percentage of the total value of the property. Each spouse will receive personal property, assets and debts whose value is added to a fair percentage.
It is illegal to hide assets to protect them from property division. In mediation, spouses work with a mediator, who is a neutral third party, to discuss any unresolved divorce issues. This means that everything (except gifts or inheritances) is divided equitably at the discretion of the judge, taking into account each person's earning potential or income, financial needs and personal property. For example, in most cases of divorce, the couple will sell the marital home, subtract the mortgage debt, and divide the profits.
Having a competent divorce finance professional on your team can help you get a fair share of the assets you've worked so hard to accumulate. However, Community Property states treat debt differently than Equitable Distribution states, so be sure to consult with an experienced divorce specialist. If you are getting a divorce and need help dividing marital property, whether in or out of court, talk to a local divorce lawyer who can advocate on your behalf. As if the decision to divorce wasn't complicated enough, you must now determine how to divide your assets and debts.
State laws vary widely, especially between Community Property & Equitable Distribution States, so check with your divorce lawyer). When divorcing spouses cannot agree on the division of property and debts, they have to go to court, where a judge will apply the laws of the state to draw up a property division order. The easiest way to deal with property during a divorce is to decide among yourself how to divide it. If you are referred to a qualified and evaluated divorce lawyer, your initial consultation will be free.
For example, if a couple buys a house, but only the husband's name was on the deed, the wife would still be entitled to part of the value of the house if they divorced. When you or your spouse files for legal separation or divorce, you can agree on the division of marital property and separate property. She also advises women business owners on steps they can take now to “guarantee the divorce of their business in the event of a future divorce. If you are going through a divorce and are concerned about the division of assets and debts, you may want to seek legal advice from an experienced family law attorney in your area.