Tips for Protecting Your Assets in a Divorce
For the last decade, divorce statistics have been on the rise – with the well-known percentage of 41% of marriages in the U.S. ending in divorce. If you find yourself heading into a divorce, there are a number of things to consider, including the cost (now averaging $15,000) and the division of assets.
Dividing up the assets that the two of you have accumulated throughout your marriage can be done in a fair and friendly manner if you can agree on a property division settlement. Understanding the process of equitable distribution in a divorce will make the entire procedure less painful and less complicated. You should be focused on separating your personal assets and your marital assets. Anything acquired during your marriage, like furniture, vehicles, or investments, are subject to equitable distribution.
Dividing Your Shared Assets
With the rules of equitable distribution in mind, the division of assets should be an amicable process. Ninety percent of divorces in the U.S. today are granted without a trial through the use of property division agreements. Otherwise, the court will decide the division of assets for you, and that is often what leads to many arguments and disappointment for both parties.
If you and your spouse start small, the division process can be quite easy. While keeping a working list, begin with your smaller personal items, like clothing, and then move onto housewares. Next, separate the furniture and decor, keeping in consideration any items with sentimental value, and then go to the bigger items, like vehicles. This way, you will develop a system with your spouse of working together and giving one another what is most important.
Once you have managed to separate a majority of the material assets in your household, you will want to begin considering the financial divisions in a divorce. The financial crisis of 2008 has caused managing a mortgage more difficult for a couple getting a divorce. It is now less likely that either party will fully get the house in any settlement. Rather, a couple will usually make a decision together based on who is able to finance and qualify for a new mortgage.
Besides your mortgage, other divisions you will need to consider in a divorce include financial and business assets. While the process of a divorce is lengthy, it does not need to be one that is uncivil. Knowing how to reach a settlement based on equitable distribution will ensure that you are able to protect your assets to the best of your abilities.