When it comes to divorce, one of the most important—and often most complicated—parts of the process is asset division. The way assets are distributed between two parties can drastically affect both people’s post-divorce financial landscape, so it’s critical to have a full understanding of how they will be split and the legal considerations that need to be taken into account. Here’s what you need to know about the asset division process in a divorce.
Determine Eligible Assets
The first step in dividing assets is determining which ones are eligible for division. Some assets such as gifts or inheritance given prior to marriage may not be part of the divorce settlement negotiations, while other marital property such as real estate or investments could potentially be split between both spouses upon divorce. It’s important to discuss these eligibility issues with your attorney prior to entering negotiations so that there are no surprises during proceedings.
Identify Property Values
Once all eligible assets have been identified, each spouse should take stock of their estimated values. This includes physical items like furniture and jewelry, but also stocks, bonds and other investments held by either party. It’s essential that each person accurately calculates their share so that an equitable amount can be negotiated in court if necessary.
Designate Marital Property
Marital property is any possession acquired during the course of marriage by either spouse or jointly between them—depending on who contributed financially towards its purchase (e.g., one partner buying a house with their own savings). Such assets must then be designated as marital property and assigned shares between both spouses according to their respective contributions during marriage (ideally through an out-of-court agreement rather than via court order).
Address Financial Obligations
In addition to tangible assets, divorcing couples must also consider any financial obligations associated with them such as mortgages or loans for cars or houses owned together during the marriage. In many cases, one party may agree to take on sole responsibility for debt repayment if it’s related to an asset solely titled in their name; however this should always be discussed thoroughly before coming up with an agreeable resolution acceptable by both parties involved in the divorce proceedings.
Divorce lawyers in Anniston can assist in mediating all discussions related to asset division during a divorce case so decision making processes become easier and fairer for all concerned – something which definitely takes some pressure off when finalizing marital settlements involving substantial amounts of money!