Dividing property during a divorce is often a complex undertaking. This is often especially true for those who have considerable assets. Getting them divided during a divorce can take a great deal of time and effort.
There are several crucial aspects to consider when you’re working through the property division process. Understanding these before you begin will allow you to properly prepare yourself for what’s to come.
Asset division
Dividing assets will usually start with the larger assets, such as the marital home. Once those large assets are split, smaller assets can be used to balance out the division even more than it already was. The value of each asset should be determined so both parties can determine how to proceed.
As you’re going through the asset division process, remember that you need to be logical about what you want to keep. You have to think about your finances and ability to hang on to certain assets. If it won’t help you in your new, single life, it might be best to avoid fighting for it.
Debt division
Debts will also have to be divided during the divorce as long as they’re considered joint or marital debts. In some cases, it’s possible to liquidate assets to cover the debts. This option means neither party would be responsible for paying off marital debts, which can help to reduce issues down the road. If that’s not possible, each debt will be assigned to a person.
One consideration for this is that creditors don’t have to abide by the divorce decree, which means that they can still hold you and your ex liable if the debt is a marital debt. If either party fails to pay the debt on time, it can affect both people’s credit history. Because of this, having debts transferred to a new account with only the person responsible is often beneficial.
Achieving a reasonable balance of asset and debt division during divorce can be challenging. Working with a professional who’s familiar with the legal aspects of these matters can help you to learn your options so you can make informed decisions.