The financial settlement will determine how your assets and debts will be settled in the event of a divorce. This is the amount that you'll be required to make payments for maintenance.
The following will be covered in this piece: matrimonial and non-matrimonial assets, financial assets such as stocks, bonds, real estate, child maintenance and child support.
Matrimonial assets
When a divorce proceeding is underway, determining what the marital asset worth is usually an arduous task. It can be a challenge as assets tend to be mixed and mixed in the marriage.
Marital assets include the property and money that the spouse and you obtained through the marriage process, or unless you and your spouse had a prenuptial and postnuptial agreement specifying that certain assets are separate property. The courts can equally distribute the marital assets between you and your spouse in divorce.
It's difficult to assess the value of the asset due to their tendency to increase in value with time. This is especially true for antiques and collectibles. Most of the time, the courts will utilize a variety of approaches to calculate what value an asset has. The methods include the cost-based approach, income-based approach and the replacement value. In certain situations an expert in valuation may be required to give an opinion from a qualified expert on the value of an asset.
How an asset is purchased can affect its value. As an example, if for instance you brought a piece of art to the union as your distinct property and you urged your spouse to improve the piece to enhance and improve its condition, then this might affect its future value. This could result in a beneficial effect on the equitable divide of property if you increase its value.
If you purchase an item with your spouse in an investment jointly made making use of the money you earned in marriage, it could increase its value and become marital property, subject to equitable division upon divorce. It is crucial to keep your separate accounts for individual and marital accounts. This holds true even when your intention is protecting a precious asset, such as an old classic car purchased through funds earned prior to the marriage.
Additionally, if your separate property is used buy an item that is classified as marital property, it can trigger comingling. You have money at a bank obtained prior to wedding. The spouse you are married to is granted access and become an associate. This is sufficient to transform the assets you have separately into marital assets because you've combined them, and changed money that was not marital to marital.
Claims of dissipation
Last but not least, a party's claim of misusing or using assets that were not used in the marriage can be a major influence on the valuation of assets. Divorce-related infidelity is a common factor. A soon-to-be ex-spouse can get the property as part of your financial settlement in the event that they are able to prove they racked up the debt and that the value of the asset was diminished.
In the process of valuing properties for equitable distribution one of the main things to bear in financial settlement mind is that any way of evaluating an asset is correct or incorrect. The best way to ensure the assets you own are treated justly is to seek out an experienced family law lawyer. We will help you determine your assets and find them, and then discuss the best way to handle them during your divorce.