Going through a divorce is challenging enough without the added stress of figuring out how to divide assets. If you’re in the midst of this tough transition, understanding how property and assets are divided can make a huge difference to both your experience and the final outcome.
The first step in asset division is understanding what constitutes marital property versus separate property. Marital property typically includes assets acquired during the marriage, while separate property includes those owned before the marriage or inherited.
Different types of assets can be subject to division, including:
Understanding these categories can help you identify all assets that should be considered in the division process.
One of the trickiest aspects of asset division is deciding who gets the house. Generally, the home is considered marital property if both parties contributed to its purchase and maintenance. Factors like who has custody of the children can also influence this decision.
While it’s easy to get attached to certain assets due to their emotional value, focusing on their financial worth can help you make more rational decisions. For instance, maintaining ownership of the family home may seem comforting but could also come with financial burdens like mortgage payments and upkeep costs.
Start by listing all assets, including everything from real estate to personal belongings. This comprehensive list will serve as the foundation for any discussions or negotiations.
For high-value items like real estate or jewellery, obtaining a professional valuation ensures that you have accurate information when dividing assets. Misjudging the value of significant items can lead to an unfair settlement.
When it comes to splitting assets, the support of a family law barrister or mediator can speed up negotiations. A direct access barrister can offer valuable insights and guidance during this process, and is able to represent you in court without the need for an intermediary. A mediator can facilitate negotiation discussions without the need for going to court, potentially making the process quicker, and in turn, less expensive.
Some spouses may attempt to hide assets during a divorce. Regularly reviewing financial statements and consulting a forensic accountant can help you uncover any hidden assets.
While it’s essential to secure immediate financial stability, don’t overlook the long-term implications of your asset division. Consider future expenses, overall financial goals and, if applicable, the needs of any children.
Different assets come with varying tax responsibilities. Understanding the tax implications can help you make more informed decisions during asset division. Consulting a financial planner can provide you with the necessary insights.
Having all necessary documentation to hand will make for a smooth asset division process. This includes:
Maintaining organised records can expedite the process and help you avoid potential disputes.
Navigating the separation of assets in divorce can be daunting, but knowing what to expect and taking the right steps to prepare can make the process more manageable.
If you’re in need of further support, our direct access barristers can provide the expertise and support needed to achieve a fair and just outcome in divorce proceedings. They can guide you through the complexities of asset division, represent you in court if necessary, and ensure you receive a fair settlement.