Understanding Equitable Distribution in Divorce

So you’ve decided to call it quits in your marriage. As painful as that decision was, now comes the hard part – how to split up everything you’ve accumulated together. Whether you were married 2 years or 20 years, you probably own assets like a house, retirement funds, savings, vehicles, and more. Figuring out who gets what in a divorce settlement can be complicated. But don’t worry, we’ve got you covered. In this article, we’ll walk you through how assets are divided in divorce so you know what to expect. We’ll look at how the law views different types of property, how courts determine what’s fair, and some negotiating tactics to get what you deserve. By the end, you’ll feel empowered with the knowledge you need to get through this difficult financial process. Now take a deep breath, pour yourself a glass of wine (you deserve it!), and let’s dive in to see how assets are divided in divorce.

Factors Courts Consider When Dividing Assets

In divorce, states aim for equitable distribution of assets, meaning a fair division of both marital and separate property between spouses. How does it work? 

– Marital property includes assets acquired during the marriage like your home, vehicles, investments, and bank accounts. Separate property is anything you owned before marriage or received as a gift.

– Most states start with a 50/50 split of marital assets. But the court will consider factors like each spouse’s income, needs, contributions, and custody schedule to determine an equitable distribution. 

– Debts also get divided. The court will consider who incurred the debt and who benefited to allocate liabilities fairly. 

– Some assets like pensions and businesses require valuation. The court will determine each asset’s net worth and split accordingly.

– If you and your spouse can’t agree, the court will step in. But negotiating your own settlement is often better since you both know your situation and needs best. Try mediation first before litigation.

At the end of the day, how property gets divided depends on your state laws and personal situation. But with open communication and willingness to find common ground, you have the best chance of reaching an agreement you can both live with. The divorce process is hard enough, so do what you can now to make untangling finances as fair and painless as possible later on.

Tips for Negotiating a Fair Asset Division

When determining how to split up assets in a divorce, the courts will consider several factors.  

–   The length of the marriage. The longer the marriage, the more likely assets will be divided equally. Shorter marriages may lead to each spouse keeping more of what they brought in.

–   Each spouse’s financial contributions. If one spouse was the primary breadwinner and earned most of the income, they may receive a larger share of assets. The court considers both financial and non-financial contributions, like raising children or maintaining the home. 

–   Each spouse’s needs and living expenses. If one spouse has greater financial needs, such as being the primary caretaker of children, the court may award them a larger portion of assets.  

–   Marital misconduct. Bad behavior like hiding assets, being abusive, or committing adultery is frowned upon but rarely directly impacts how property is divided unless it caused financial hardship.

–   Separate vs. marital property. Property acquired before the marriage or by gift/inheritance during the marriage usually stays with the original owner. Marital property accumulated during the marriage is divided.

–   Current value of all assets. The total value of all marital assets, like the home, vehicles, investments, savings, and personal property is determined so it can be properly split in a fair manner based on the situation.

Going through a divorce is difficult, but understanding how courts determine who gets what can help you get the fairest outcome possible. Be open, honest and willing to compromise. The law aims for an equitable division, not necessarily an equal one. With patience and the right mindset, you can achieve an acceptable resolution.