Understanding Marital Property: How Are Assets Split During Divorces?

Charlie Brown By Charlie Brown, 25th Oct 2017 | Follow this author | RSS Feed | Short URL http://nut.bz/1fin472o/
Posted in Wikinut>Family>Divorce

Divorce is distressing for anyone. Dividing marital property during a divorce is even more painful. During an emotional turmoil, sitting down and listing the assets each side gets can be despairing. That is why many couples are getting into prenuptial agreements these days. This kind of premarital agreement can prevent a lot of bitter quarrels about the division of marital property and wealth.

Understanding Marital Property: How Are Assets Split During Divorces?

Divorce is distressing for anyone. Dividing marital property during a divorce is even more painful. During an emotional turmoil, sitting down and listing the assets each side gets can be despairing. That is why many couples are getting into prenuptial agreements these days. This kind of premarital agreement can prevent a lot of bitter quarrels about the division of marital property and wealth.

What to do to assure a healthy marital property division?

A couple going through a divorce should have their own separate attorneys. It will help to carry the negotiation forward and in a positive direction. Getting two teams of family law attorneys to represent the interest of each side is very important. Sometimes, finding a middle ground in these situations can be tough. Here’s what you can do while dividing marital assets:

• Hire a good mediator, who can help you work out the sticky patches during the division of marital property. While some states may require mediation during the property divisions, other states allow their residents to do so on their own. Therefore, if you can reach agreeable terms, you may not need to hire attorneys in Texas. However, if your spouse has a divorce attorney, we recommend you to get your own attorney as well. History of divorces in the state shows that the spouse who hires an attorney gains more out of the separation. You need a reliable divorce attorney to help you understand what you deserve and what you will get with or without a prenup.
• You should take help from your attorney and find out how the courts handle division of property. If you have custody of the kids, property division might be quite different from what you expect. You need to research and study more cash histories to find out how the court usually rules in situations akin to yours. Anyone, who is going through a divorce, should learn about their current legal circumstances, their state laws about divorces and more about the power of pre-nuptial agreements in the state of Texas.
• You should not evaluate property by their current dollar value. Think in terms of long-term value, financial security and family values. You need to think about its liquidity, tax implications and cost basis before you can lay your claim for an asset. Before that, you need to understand the difference between separate property and marital property. It will help you know what you can divide.

What is separate property?

Any property that belonged to either spouse before the marriage, an inheritance or family heirloom, payment or compensation from personal injury judgment and a gift from a third party during or after the marriage.

What is marital property?

This includes all income by either of the spouses during the marriage period. This can consist of 401K pension plans, retirement plans, stock options, commissions, country club memberships, bank accounts, brokerage accounts, professional practices, cars, boats, and art.

Why do you need a divorce lawyer?

To settle the dispute between marital and separate properties. Sometimes, separate assets can become marital properties when the spouses comingle them with marital property. This is true for marital property as well. To avoid the confusion and the bitter arguments that follow, the couple going through the divorce and related property divisions, need to hire their own teams of family law advocates.

Tags

Divorces, Marital Property

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