Financial settlements are how your debts and assets are resolved in the event of divorce. This is the amount that you could be expected to be liable for maintenance.
This article will discuss the following subjects The following subjects: Matrimonial assets, other assets that are not marital, financial assets (stocks, bonds and property), child support and maintenance payment.
Matrimonial assets
An issue that is often encountered in divorce cases is deducing the value the marital estate. It isn't easy since assets are often commingled and mixed up during the wedding.
Marital assets include property and cash that the spouse and you obtained through the marriage process, except if you and your spouse signed a prenuptial agreement or a postnuptial agreement specifying that certain assets are separate property. The court will equally divide the marital assets among both of you in the event of divorce.
It's not easy to assess the value of assets because they are likely to appreciate in time. This is the case especially for heirlooms, art pieces collection items, as well as other important objects. A court can employ a variety of techniques to assess the value of an item. Methods include costs-based approach, income-based approaches as well as replacement value. Sometimes, a valuation expert is required to provide a professional opinion about the value of the item.
The way an asset is purchased can affect the value of an asset. As an example, if for instance you acquired a painting in the marriage as a distinct property and you urged your spouse to make improvements on the piece to enhance and improve the condition of it, this may affect the value of it in the future. It could have a positive effect on the equity distribution of assets, if you can increase the value of your art.
If you purchased an item with your spouse in an investment jointly made with the funds earned in union, the item could gain value and be the property of your marriage, which is which is subject to equitable division in divorce. This is the reason it's essential to keep your financial accounts apart and to not combine those of your spouse regardless of whether you wish to protect an asset like a vintage vehicle that was purchased using funds earned prior to the marriage.
Additionally in the event that your personal property is used purchase an item classified as marital property, it could result in a comeling. If you own a bank account that has money you made prior to your marriage, and you then add your spouse's name to the account, and grant them access. This can be enough to transform your property to a marital property because the assets have been joined and the account has been converted the money into marital instead of non-marital.
Claims of dissipation
The final major element which can affect the worth of an asset could be an assertion that one person mismanaged or wasted assets in the wedding. This happens most often for divorce cases in which the issue of infidelity can be a factor. The soon to be divorced spouse could take the asset as a component of the financial settlement you negotiate when they prove that the funds were thrown away and the worth of the property was diminished.
If you are considering valuing assets for equitable distribution purposes one of the main things to bear in mind is that any approach to evaluating an asset can be considered to be right or wrong. One of the best ways to make sure that your assets are handled in a fair manner is to speak with an expert family law attorney. Our attorneys can assist financial settlement you in locating and identifying assets. They will also help identify the best approach to those assets when you divorce.