Divorce is a difficult decision that can be made even more challenging when dividing assets. It is important to understand your rights and the legal process involved when splitting assets during a divorce. Whether you are going through a contested or an uncontested divorce, this article provides an overview of how to divide assets in a divorce.
Steps for Dividing Assets in a Divorce
Before beginning to divide assets, it is important to understand the laws in your state regarding asset division. Each state has its own rules, so it is important to research what applies to you. There are four steps involved in dividing assets in a divorce proceeding.
- Identify Your Separate Property
The first step, when you’re looking for the answer on “how to divide assets in a divorce” is to identify any property that each party owned before marriage, any gifts or inheritances received after marriage, and any property excluded from the marital estate by written agreement of the parties.
This type of property is known as separate property and will not be divided between the parties during the divorce proceedings. It is important to provide proof that this type of property exists and that it should remain separate from marital assets during the divorce process.
- Value Your Marital Property
The second step is to determine the value of all marital property (assets acquired during marriage). This includes real estate, investments, retirement accounts, bank accounts, cars, furniture, jewelry, art collections, etc.
It is important to obtain professional valuations for any high-value items such as real estate or investments. This will ensure that each party receives their fair share based on accurate appraisals of these items rather than just relying on estimates or one spouse’s recollection of values.
- Divide Your Assets Equitably
Once both parties have agreed on which items are separate property and what their value is, then they must decide how they will divide up those remaining marital assets equitably between them using state law guidelines as a reference point if necessary.
Equitable does not necessarily mean equal; it means fair under all circumstances considering each person’s financial situation and contributions over time during the marriage.
- Draft an Agreement and Finalize Divorce Paperwork
Finally, once both parties have agreed on how they want their marital assets divided up, they must draw up an agreement reflecting their decisions. This agreement should be signed off by both parties and included with all other final paperwork submitted for official filing with court offices when divorcing.
