How to Handle Property Settlement During Divorce
Divorce is one of the most stressful situations in every person’s life. Studies have concluded that it is the second biggest reason for depression and stress. Not only is it stressful for the spouses, but their children can get emotionally scarred from the separation process as well. Apart from that, the biggest issue that arises from a divorce is also the division of property between the spouses. In order to help you find rational and civil solutions for this situation, we have singled out a few easy-to-follow steps.
1. Dividing the debts
Sometimes a household can be stricken by a large debt as a consequence of negligence from both sides, and therefore tensions may arise leading to the termination of the marriage. On the other hand, if one side is solely responsible for the debt, then the judge will decide in such a way that the person responsible will have to pay the entire amount. However, debts that have accumulated due to common expenses are divided equally. Therefore, it is important for the spouses to have access to the family’s financial data so that both know the current situation.
2. The division of real estate
The next big issue is certainly the division of real estate. The best point to start from is the date when the household items were purchased. The law states that property which was purchased by one side before the marriage legally belongs to that spouse because it is treated as a premarital asset. However, if the property has served as a home which the spouses purchased while they were married, or if it served as a source of income during the marriage, it is treated as a marital asset, which will be divided equally between the spouses. For more detailed answers to real estate division questions, we recommend hiring an expert Parramatta lawyer.
3. Community property vs. equitable distribution
When it comes to the division of marital property, there are two main courses of action. Most of the states use the equitable distribution system, but the much larger states tend to operate according to the community property system. The difference between these two types of division is that the community property system doesn’t favor one side more than the other according to some laws and therefore divides the property equally between the spouses. On the other hand, in equitable distribution, the spouse who has a higher income will get the larger share than the other one.
4. Separate and marital property issues
Other issues with separate and marital property can occur if the spouses knowingly combine their individual assets during their marriage. This can best be explained with the example when one spouse receives a large inheritance and decides to place it all in a joined bank account. From that moment that inheritance becomes marital property and will be divided equally in court. Additionally, if you own a property which you have acquired before the marriage, but during the marriage for some reason you’ve decided to add your spouse’s name as the co-owner, then it will also be treated as marital property and will be divided in the same manner. However, everything gained as a gift from a third party will be treated as a separate asset and will be given to the spouse who was meant to receive it.
5. Child support
Child support is an important issue. Paying for child support is mandatory and if payments are not consistent, or if the parents don’t pay at all, then they will be legally prosecuted. The payment is usually based on the amount of money that each parent makes and the amount of time that each of them spends with the child. In some cases, the parents have the right to increase or decrease the amount that they have to pay. This can be possible in the cases when both parents agree that a specific amount is sufficient for children. However, the person who has the final word in these cases is the judge who can accept the guidelines determined by the parents or not.
As we can see, property division between spouses can be quite a stressful situation. The important thing is to abide by the law and both sides will eventually get what they want without having to deal with unnecessary stress.
My name is Alex Williams. I am a journalism graduate, and a rookie blogger trying to find my luck. Blogs are the perfect opportunity for presenting yourself to wider audience, getting the chance to showcase my expertise and receiving recognition. I am a regular contributor at Bizzmark Blog. Facebook | Twitter