British law firms marked a 122% increase in divorce inquiries last year. One major aspect of divorce is property division.
Property division can be full of complications, both spouses must reach a final written decision. This guide will should you all of the ins and outs of the property division process.
Divorce Property Division
Spouses can organize their own terms and conditions through two forms of a written agreement. They can either complete an enforceable prenuptial agreement or a written settlement agreement.
If these two documents are unavailable then the courts will decide on the division of marital property. These rules and regulations can differ from state to state.
These conditions rely on the statutory guidelines the states undergo. Various principles apply to these agreements.
These terms include exactly what aspects of the property can be divided. Prenuptial agreements have specific terms and can affect different types of property as well.
Various states view marital property in two different ways. The division of this marital property follows two different categories.
Community Property States
Some states in America fall under community property states guidelines. California, Idaho, Louisiana, Texas, and Arizona are some states that fall into this category.
The Community Property States assumes that, regardless of background, all spouses are dividing their properties equally. This applies to all marital property. This can create an easy process, where courts have a pre-defined line drawn for most cases.
Community guidelines require both spouses to relinquish 50% of their properties. Under this jurisdiction, properties are split into marital and separate. Marital, under these circumstances, consists of one-half of this division.
This rule can provide grief to both spouses as this rule has a strict enforcement policy. The fifty-fifty line is also a clear cut between the spouses regardless of income differences.
Marital Property & Assets
The marital property outline includes all real and personal property gained during the duration of the marriage. Whatever properties either spouse collects becomes split into one-half.
Several items fall under the marital property ordinance. This can include a collection of any kinds of wages or accumulation of wealth.
In certain circumstances, a spouse may attain a pension. This split can include a fraction of that pension as well. Another aspect may include more expensive furnishing items in a household.
Some cases involve a spouse owning a business. They can garner interest from these investments. The division can include any interest income from these investments.
A spouse may also hold various stock options. This division can add earnings from those stocks or the stock options themselves. As long as they were built during the course of the marriage.
All other states that do not follow these regulations apply equitable distribution of all marital property. So, there will be a long process of agreeing upon various terms and conditions.
Commingling & Co-Ownership
Courts will not consider separate property as a clean 50/50 split. The separate property policy can include anything acquired by the spouse before the marriage. If the spouse was given a gift of property, this cannot be a part of the division. Any property acquired by inheritance is also not a part of the policy as well.
There can be a possibility of properties mixing and canceling certain policies. This can occur if separate property comingles. After commingling, separate properties can transition into community property.
For example, perhaps a wife buys a condominium before marriage as a sole owner. She may later add the husband as a co-owner of the property.
If this is the case, that property becomes community property, losing its separate status. The commingling of the condominium transitions the status of the property to marital property.
Commingling may not necessarily involve a written co-owner signature. Commingling can occur if there is a confidential agreement as well. If a spouse agrees to share the use of a property, it may fall under the marital property.
Property Division Attorney
The most common form of division, in the united states, falls under equitable distribution. The courts will help rule the division of the property in just circumstances.
Many factors go into deciding the division of property. The court systems are a way of making this system less arduous.
The duration of the marriage is a factor courts will consider when dividing property. If there is a marital fault that leads to the divorce, this will also be taken into consideration. Income inequality can also play a part when dealing with the division of equity as well.
A court can also conduct a background check on both spouses. One spouse may hold a criminal record which may hinder the equitable division of property.
Even the living conditions can be taken into consideration. Many factors can affect marital property and debt. A prenuptial agreement can state the factors or property outlines.
One major factor is the child custody standards. The courts may favor the spouse that takes more responsibility in child-rearing.
Equitable Division & Assets
Various factors may apply such as background, inheritance value, and education. The courts may look into each spouse’s potential future earnings as well.
This can include any assets that can build, things such as stock options and business interest. A valuable set of degrees may determine that one spouse will have a higher possibility of generating more income. Even religious practices can interfere with the division of property.
Many court cases request bank statements documenting the earnings of both spouses. They can also have the power to review large business expenses.
Courts have the ability to conduct a full analysis on any assets developing wealth. Sometimes courts discover a spouse being financially unfaithful after discovering hidden assets.
This equitable division may not be an equal 50/50 division. It only relies on providing a fair process in which to divide the belongings.
The earning capacities can make a difference as well. The courts wish to fulfill the basic needs of each spouse while providing rightful ownership of properties.
Property Division
All divorces are difficult. Property division can be a long and arduous process and sometimes states are more cutthroat.
If there is doubt about the division of property, spouses should consider hiring a property division lawyer. Check out our marriage blog to find out more about the lawful division of property!
