Whether you decide to negotiate a property settlement or have a judge divide your marital assets, it’s important to understand the legal considerations and financial implications of the decision. A good Miami divorce attorney can help you understand the legal rules that govern property division in your state and advise you on how to make an informed decision about your property.
What Are the Different Types of Property?
There are two types of property that you and your spouse can own during your marriage: marital property and separate property. Marital property includes all money and other assets that the couple earned or acquired during the marriage, unless the couple entered into a prenuptial agreement to keep some or all of their property separate. Separate property may include assets that were inherited by one of the spouses, gifts received prior to the marriage or personal injury awards.
If the couple has a home, it can be especially difficult to split it in a divorce because the home is so closely tied to a family’s history and often comes with emotional attachments. However, there are ways to approach the issue that will minimize conflict and ensure you get a fair share of ownership.
The First Step in Property Division: List and Value Your Assets
A complete list of your assets is the best way to start the process of determining what should be divided. This means you and your spouse should both be honest about what each of you owns, and it also means you must determine the true value of each item so that you can negotiate a reasonable division.
This list should include all the major financial items, such as bank accounts, retirement plans, investment accounts and property like cars, homes, jewelry and art. Then, you should try to estimate what each item is worth (usually starting with the “fair market value” of your largest assets), and then agree on how to divide it.
Getting a Good Deal on Your House
While it’s not the most common or most expensive item to divide in a divorce, it’s arguably the most important. That’s because the value of your house can be a key factor in deciding how your other assets will be divided, as well as how much alimony you’ll receive and how you’ll pay it.
The court will use a number of factors when it decides how to divide your house, including your income and expenses, the age and health of you and your spouse, and how much each of you contributed to its maintenance and upkeep during the marriage. If there are children, the court may consider how the house fits in with their education and future living situations.
If you and your spouse can’t come to an agreement, the court will decide on a property division plan that will be fair to both of you. In some cases, a judge will order the parties to hire an appraiser or sell their assets to determine the fair market value of them.