In the case of divorce, your financial settlement will decide how you'll settle debts and assets. This includes the amount you will be required to make payments for maintenance.
This article will cover the following topics in this article: marital and non-matrimonial assets, financial assets, such as stocks bonds and real estate, child maintenance and maintenance payments.
Matrimonial assets
When divorce proceedings are in progress, determining what the marital asset worth is usually an arduous task. It's a difficult task since assets are often commingled and mixed in the marriage.
Marital assets consist of assets and cash you and your spouse obtained during the marriage, unless you and your spouse have signed a prenuptial or postnuptial arrangement that stipulates that some assets belong to separate properties. The court will split marital property between you and each spouse in an equitable way after divorce.
The worth of an asset can be difficult to determine because the values of assets tend to grow over the course of. This is especially true for the heirlooms of art, collectibles, and other valuable objects. The court will use a combination of methods to determine what value an asset has. These methods are the cost-based approach, income-based approach and replacement value. In some instances, a valuation expert may be necessary to provide an expert opinion regarding the value of an asset.
The method by which an asset gets purchased can affect its value. As an example, if for instance you brought a piece of art in the marriage as a separate property and you encouraged your spouse to improve the piece to enhance and improve its condition, then this financial settlement may affect the value of it in the future. It could have a positive impact on the equitable allocation of assets in the event that you can increase the value of your art.
In the same way, if you or your spouse bought something as an or investment with the proceeds of the marriage, this can enhance its value, which makes the property marital and subject to equitable distribution upon divorce. This is the reason it's crucial to keep your financial accounts apart and to not combine them with marital ones and even when you intend to safeguard an asset, for example, a automobile that you purchased with funds earned prior to the marriage.
Additionally when your separate property is used to buy an item classified as marital property, it could result in a comeling. For instance, suppose you have a savings account that has money you earned before your marriage and then you join your spouse's account and give them access. This could allow you for you to change your separate account into a marital one since the assets are mixed and then you've transferred the money from non-marital to marital.
Claims for dissipation
Another factor that can impact the value of an asset could be the possibility that one of the parties has abused or destroyed assets during the marriage. Divorce-related infidelity is a frequent cause. The soon to be divorced spouse could get the property as part of your divorce settlement in the event that they are able to prove the funds were wasted and the assets value was diminished.
The most important thing you need to consider when reviewing assets in order to decide on fair distribution is that there isn't a right or incorrect method. Get a knowledgeable family lawyer to make sure your assets are dealt with equally. We will help you determine and identify assets, determine the most appropriate way to handle them during the divorce process.