Property division is one of the main discussions during divorce proceedings. It involves classifying assets and liabilities and then placing them under marital or nonmarital property.
The court would divide marital property between parties. Meanwhile, each party gets to keep sole ownership of property classified under nonmarital. However, complications might arise while classifying each asset based on the qualifications set by the law.
Certain assets and liabilities could fall under nonmarital property if they meet the following conditions:
- Assets and debt gained before the marriage
- Property received by a spouse separately as a gift, inheritance or in exchange for other nonmarital assets
- Income or wages obtained through nonmarital assets during the marriage unless spent or regulated as marital
- Property excluded from marital assets and liabilities based on a written agreement
- Debt and other liabilities authorized using a forged signature of the other spouse
Specific assets might be marital even if they meet these conditions. The court would decide after reviewing the circumstances and the related evidence.
Once the court finalizes property classifications, they assess the marital property and divide them equitably.
Additional procedures for marital property
Especially in high-asset divorces, certain marital assets might require you to liquidate them before distribution. It is a step determined by the court based on the circumstances relevant to specific pieces of property.
Unfortunately, factors necessitating these procedures are beyond the divorcing couple’s control. The judge would always have the final say regarding property division in court.
Additionally, a divorcing couple could negotiate out of court and proceed with an uncontested divorce. They can also try mediation and other alternatives to reach a mutually satisfactory agreement.