To understand what your financial life will be like post-divorce, one must look at what finances looked like during marriage. A couple’s marriage story is not just about the moments experienced; it includes the money earned and property obtained as well. Thus, a divorce story must spell out how these assets are treated. In other words, whether certain assets are considered marital property, causing them to be up for division during the divorce process.
Property division during divorce
When moving through a divorce, it is important that your interests are protected. This means, if a prenuptial agreement is not included in the marriage, spouses need to determine what assets are included in the divorce, their value and how the distribution of these assets could impact them when it comes to taxes and estate planning documents.
When determining what is or might be included during the property division process, one must look at their marriage story. That means going through the timeline of events that occurred during the marriage, such as dates of moves, property purchased, when children were born, jobs had and financial accounts.
What could impact the division of assets?
While labeling assets and property as marital or separate property is an essential step, other steps are necessary to establish a fair and equitable division of property. Take for example a spouse that took off work for an extended period of time to care for the children or quit his or her job to support a move and career change for the other spouse. These events come into play when assessing how assets should be divided.
Large purchases made during a marriage could spark disagreements when determining who gets what, as property cannot be split in half like financial accounts can. Thus, details surrounding the purchase of vehicles, real property, vacation homes, artwork, jewelry and other property should be assessed. This could help spell out not only the value of such property but also any sentimental value they may hold for one or both spouses.
During a divorce, spouses should devise a narrative. Much like their marriage has a story so does their divorce. While it is a difficult story to write, it is one that should be carefully written with all the details. Understanding the process and all the property included in it could help ensure your rights are protected and a favorable outcome is achieved.