It’s said that almost 50% of marriages end in a divorce and is considered as one of the most common reasons for stress. A major element during divorce proceedings is the settlement of marital assets between the separating parties. In fact the issue is so widespread that almost every book on divorce emphasizes on getting a divorce even when you are protecting your marital assets. Typically in every divorce proceedings, property that the court thinks to be marital property is divided and the rest or non marital property is returned to the party that bought it. Thus what’s important is the time when the property was acquired, and not ownership of the property. If you are one among the many considering a divorce, or are planning on how to get divorced, keeping the financial impact at minimal, read further.
As earlier said, it is the timing of the purchase of the property, and not the title that’s important when considering property settlement during divorce. Marital property is distributed equally even though it was acquired by one of the spouse. The philosophy behind this is that marriage is a full partnership and contribution of one is equal to the contribution of the other. Even though property is divided equally, there are chances that one party may get a higher share than the other. In such cases, the value of the higher property is compensated in cash and given to the person receiving less property. Although non marital property is returned to the person who bought or inherited it, in some cases, it can be divided, if it’s proved beyond doubt that the other party had to suffer untold hardship.
Property like family home, pensions, family owned business and even debts are a subject of debate when considering divorce. Family home is generally given to the custodial parent and the other spouse is compensated with something that would equal the value of the home. Pension, which is the second largest marital property to be divided, is settled through a Qualified Domestic Relations Order (QDRO). Debts are also distributed equally between the parties, except those which are incurred pre marriage or post separation.
It is very important to protect your assets, during a divorce. For those contemplating a divorce, make sure you speak to an attorney specialized in divorce proceedings. He would help you to sort out issues related to your property assets and suggest ways to protecting assets from a divorce.
The hassle of protecting your assets during a divorce can be very stressful, that’s probably why many couples resort to pre nuptial agreements that discuss about the settlement of assets in case of a separation and also about things like spousal support in detail.
http://secondthoughtsondivorce.com - A practical guide to identifying and retaining your hard earned assets when considering marriage or divorce, including strategies to help you achieve these goals |
