Divorce and Division of Assets
Divorce is the legal termination of a marriage
Divorce is different from separation in that, by law, the marriage is considered legally terminated. A separation can occur when the couple are living separately, but have not filed a request for the court to declare a divorce.
Divorce is different from separation in that, by law, the marriage is considered legally terminated. A separation can occur when the couple are living separately, but have not filed a request for the court to declare a divorce.
Property acquired during marriage:
Property acquired during marriage is called marital property. Depending on the state of residence, the property is treated differently in case of divorce. There are two categories that states assume regarding the treatment of marital property; Common Property and Equitable Distribution. Laws on equitable distribution are followed in most states. The following states are the exceptions and in which the common property is established: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
What happens in a Common Property State?
In states where common property is followed, all property acquired by individuals prior to marriage is considered separate property of each spouse. Also considered separate property is any property received by a spouse as a gift or inheritance, even if it was received during the marriage, and any property that can be identified as the property of a separate asset. There is commingling separate property guide for who want to get deep knowledge. This means, for example, that an asset purchased entirely with money that was gifted to the spouse is considered separate property. Finally, based on the separation, all earnings are considered the separate property of the spouse who earned them. This separation need not be legally or formally recognized by a court.
Property acquired during marriage is called marital property. Depending on the state of residence, the property is treated differently in case of divorce. There are two categories that states assume regarding the treatment of marital property; Common Property and Equitable Distribution. Laws on equitable distribution are followed in most states. The following states are the exceptions and in which the common property is established: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
What happens in a Common Property State?
In states where common property is followed, all property acquired by individuals prior to marriage is considered separate property of each spouse. Also considered separate property is any property received by a spouse as a gift or inheritance, even if it was received during the marriage, and any property that can be identified as the property of a separate asset. There is commingling separate property guide for who want to get deep knowledge. This means, for example, that an asset purchased entirely with money that was gifted to the spouse is considered separate property. Finally, based on the separation, all earnings are considered the separate property of the spouse who earned them. This separation need not be legally or formally recognized by a court.
What is Common Property ?
Common property is something that both spouses own together. Any gains acquired during the marriage up to the date of separation are considered common property. Furthermore, any assets purchased with the money that is part of the common property are considered common property and are equally owned by the spouses. Like earnings, all debts incurred during the marriage up to the date of separation are considered common debts. Debts include anything from a credit card balance to car loans and home mortgages. This means that both spouses, no matter who earned the money or who accumulated the debt, are considered owners of the assets and of the debts in equal parts. Generally, upon divorce,
Common property is something that both spouses own together. Any gains acquired during the marriage up to the date of separation are considered common property. Furthermore, any assets purchased with the money that is part of the common property are considered common property and are equally owned by the spouses. Like earnings, all debts incurred during the marriage up to the date of separation are considered common debts. Debts include anything from a credit card balance to car loans and home mortgages. This means that both spouses, no matter who earned the money or who accumulated the debt, are considered owners of the assets and of the debts in equal parts. Generally, upon divorce,
What if I live in an equitable distribution state?
Equitable distribution states treat property differently when divorced. Generally, equitable distribution refers to an equal division between the spouses. However, these states allow that due to some circumstances that occurred during the marriage and after the divorce, they indicate which spouse will be granted certain assets as well as which debts. The goal in an equitable distribution state is to give each spouse what is “just” according to the circumstances. This means that the courts will consider, among other things, how much each spouse contributed to the marriage in terms of earnings, as well as who cared for the children of the marriage and even the potential earning capacity of each spouse.
Equitable distribution states treat property differently when divorced. Generally, equitable distribution refers to an equal division between the spouses. However, these states allow that due to some circumstances that occurred during the marriage and after the divorce, they indicate which spouse will be granted certain assets as well as which debts. The goal in an equitable distribution state is to give each spouse what is “just” according to the circumstances. This means that the courts will consider, among other things, how much each spouse contributed to the marriage in terms of earnings, as well as who cared for the children of the marriage and even the potential earning capacity of each spouse.
For more information about divorce and separation, please contact a family law attorney.
Talk to a qualified family law attorney today
This article is intended to be helpful and informative, but legal matters can be complicated and stressful. A qualified family law attorney can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local family law attorney to discuss your unique legal situation.
