When a married couple decides to divorce, one of the most important parts of the process is determining how their assets and debts will be divided. This division can be complicated since it involves both tangible items like property and intangible items such as retirement accounts.
In this blog, we will discuss how debt and asset division work during a divorce proceeding. By understanding these details ahead of time, divorcing couples can better prepare themselves for whatever comes their way during the proceedings.
Is Your Property Marital or Separate?
When it comes to asset division, the most important factor that is taken into consideration is whether or not the property in question is considered marital or separate. Marital assets are those which were acquired during the marriage and are viewed as being jointly owned by both parties. Separate assets are those which belonged to one person before the marriage and/or were gifted or inherited by an individual during the marriage.
In most states, both marital and separate assets are subject to division during a divorce. However, certain assets such as premarital gifts or inheritances are typically categorized as separate property and thus not subjected to splitting between both parties.
What Debts Are Included in the Settlement Agreement?
When it comes to debt division, couples need to understand which debts are included in their settlement agreement. Generally speaking, all debts that were acquired during the marriage are categorized as marital debt and must be split between both parties. This includes credit card debt, car loans, mortgages, student loans, and medical bills.
In some cases, the court may also decide to include premarital debts in the division of assets if they were acquired by one spouse before marriage but used for a joint purpose during the marriage. This could include things like payment towards a home equity loan or car loan.
Why is it Important to Have an Attorney?
Having a knowledgeable attorney on your side throughout the asset division process is essential. An experienced attorney can help you navigate the tricky waters of asset and debt division and ensure that both parties receive a fair outcome.
When it comes to asset division, an attorney can help you determine which items should be categorized as marital and separate property. They can also guide how to ensure the equitable distribution of all assets between both parties. Likewise, a lawyer can help you understand which debts will be included in the settlement agreement and who is responsible for what moving forward.
Navigate This Process With Confidence
The division of assets and debts during a divorce can be complex, so it’s important to understand how this process works to ensure that both parties receive a fair outcome. By having an experienced attorney on your side, you can navigate these waters with confidence and know that your rights will be protected throughout the entire process.
With the right attorney and knowledge of applicable state laws, divorcing couples can have the peace of mind that their assets and debts will be divided fairly. With this information, both parties can move forward confidently into the next chapter in their lives.