Financial settlements are how your debts and assets will be resolved when you get divorce. This includes the amount you'll be required to contribute towards maintenance.
The following will be covered in this article: matrimonial as well as non-matrimonial assets, such as stocks bonds, and real estate, child maintenance and child support.
Matrimonial assets
The most frequent issue encountered during divorce proceedings is to determine the worth in marital property. It is often difficult to calculate the value of these assets since they're often mixed up during marriage.
Marital assets refer to assets and cash both of you acquired during the marriage, unless you and your spouse signed a prenuptial agreement or a postnuptial agreement that specifies which items are property of separate ownership. The court will divide the marital assets between you and each spouse according to an equitable method following divorce.
The value of an asset may be difficult to establish since the value of assets tend to increase over the course of. Particularly, this is the case with collections and heirlooms. The court could employ several techniques to assess the value of an object. These methods are the costs-based approach, income-based approaches as well as replacement value. In certain situations the services of a valuation expert might be required to give professional advice on the value of an asset.
What the way in which an asset is acquired is also a factor in its value. In the case of example, if you included a particular piece of artwork in the marriage as a separate property and you encouraged your spouse to take care of it in order to improve its condition, it can affect its value in the future. It can have a positive effect on your equitable distribution of assets, if it increases its value.
If you purchase the item along with your spouse as a joint investment making use of the money you obtained during the wedding, it may increase its value and become the property of your marriage, which is subject to equitable division upon divorce. This is why it is vital to maintain your personal accounts for financial matters apart and to not combine them with marital ones regardless of whether you wish to protect an asset like a car purchased with money you earned prior your wedding.
Comingling can also occur if distinct property is used for the purchase of an item considered as marital property. There is money from a financial institution that you earned prior to your wedding. Your spouse is given access and added as member. This may be enough for you to change your separate account to one that is marital as the assets have been joined and the account has been transferred the money from non-marital into marital.
Refusal claims for dispersal
Last but not least, the assertion of a partner that they have been misusing or waste of assets within the marriage can be a major influence on the value of assets. It is especially common in divorce cases where the issue of infidelity can be a factor. If the soon-to-be ex-spouse of yours can demonstrate that they used up money from the marriage and reduced the value of the asset, then the asset may be awarded to them in the form of a settlement for financial issues.
The most important thing you should remember when evaluating the assets you have to consider for equitable distribution is that there is no right or incorrect method. The best way to ensure that your assets are dealt with in a fair manner is to speak with an expert family law attorney. We can assist you in identifying your financial settlement assets and find them, and we can then talk about the best method to treat them in your divorce.