When you have chosen to end your marriage, you and your spouse will take steps to separate your lives from each other. This may be easier said than done, especially if you have been married for a significant amount of time. During your marriage, you have probably accumulated a wide variety of different types of property. Determining how to divide this property is not always easy, but the divorce process will typically require you to account for nearly everything you own.

As you proceed with your divorce, you may work to negotiate a settlement that both you and your spouse will find acceptable. Once you have agreed on all the terms of your divorce settlement, you and your spouse can file the settlement in court, and a judge will issue an order dissolving your marriage. Unfortunately, there may be some situations where reaching an agreement on a settlement will not be possible. When there are unresolved disputes, a divorce trial may be necessary. 

A divorce attorney can provide guidance on whether your case may involve litigation and the steps that will be followed in a contested divorce. They can also advise you on other solutions that may be used to resolve disputes, such as mediation, and they can help you work with financial experts to address any complex concerns that may need to be resolved.

Understanding Marital and Separate Property

The assets addressed during your divorce will typically include all property that you and your spouse own together. This is referred to as marital property, although it is known as community property in some states. In general, if you or your spouse purchased or otherwise acquired property after the date you were married and before you became legally separated, it will be considered marital property.

Whether either party purchased property on their own, using either their own income or money saved in a joint account, will not affect the status of the property as marital property. Similarly, even if property is titled in the name of one spouse, it will still be considered marital property if it was purchased during the marriage.

Separate property, which is also known as non-marital property, generally includes property that either spouse owned before getting married, as well as anything purchased after a legal separation. In certain cases, other assets may be considered separate property, such as when one spouse received an inheritance during the marriage. As long as these assets are kept separate from marital property, they will usually be considered property that is solely owned by one spouse.

The determination of whether assets may be classified as marital property or separate property can sometimes be complicated when these types of property become mixed together, which is known as commingling. For example, if your spouse received money as an inheritance, and they placed the funds in a joint account and used them to pay for family expenses, the money may be considered to have been converted to marital property. 

During the divorce process, you can take steps to determine the value of both marital property and separate property. Questions about how different types of assets may be classified can be addressed by a divorce lawyer.

Addressing Different Types of Marital Property

As you determine how your marital property will be divided, you may need to consider multiple different types of property, including:

• Personal Belongings: All items you own and keep in your home or other locations may need to be considered. These may include furniture, appliances, dishes and kitchen utensils, decorations, gardening and home improvement tools, etc.
• Real Estate: Determining who will own your family’s home is not always an easy decision. Both you and your spouse may be emotionally attached to the property, and if you have children, you may want to avoid uprooting them and moving to a different community. You may choose to sell the home during your divorce, or one spouse may maintain sole ownership. If one spouse will own the home, they can take steps to remove the other spouse from the home’s title and refinance the mortgage. Other properties, such as vacation homes or rental properties, may also need to be addressed during the property division process.
• Vehicles: As with certain types of personal property, you and your spouse may each maintain ownership of the vehicles that you primarily drive. However, it may be necessary to consider the value of each vehicle and the amounts of auto loans that still need to be paid off as you determine how all of your marital property will be divided. Any additional vehicles, including high-value vehicles like luxury cars, classic cars, or sports cars, may need to be evaluated to determine whether they may be divided or sold during the divorce process.
• Retirement Accounts, Investments, and Other Financial Assets: If you or your spouse have saved money in retirement accounts such as a 401(k) or IRA, you may need to divide the funds in these accounts. When doing so, special instruments may be used to ensure that you can avoid paying taxes or incurring penalties for withdrawing funds before reaching the age of retirement. Other types of financial assets, including stocks, bonds, or pension benefits earned by one spouse during your marriage, may also need to be addressed.
• Business Interests: If either you or your spouse founded, purchased, or otherwise acquired a business while you were married, the company will usually be considered marital property. As you determine how to divide marital assets, you may want to take steps to ensure that the business will remain intact and operational. This may require one spouse to buy out the other spouse’s share of the business. Alternatively, the business may be sold during the divorce process, or you and your spouse may agree to maintain joint ownership and continue working together as business partners after your divorce.
• Debts: It is important to understand that any debts acquired by either spouse during your marriage will be considered joint debts. These include balances on credit cards, even if a card was in one spouse’s name. You may need to determine who will be responsible for paying off different types of loans, including home loans, auto loans, student loans, or lines of credit.

As you prepare to divide property during your divorce, an experienced property division lawyer can provide guidance on what you will need to consider. They will ensure that all forms of property are taken into account.

Legal Representation to Address Property Issues

Issues related to marital property may be complex, and a divorce attorney can assist you in compiling information about all of your marital assets, as well as separate assets owned by you or your spouse. They can help you work with financial experts when necessary, such as professionals who can perform business valuations to ensure that you fully understand the value of business assets. Whether you are looking to maintain ownership of your family home, ensure that you can continue operating a business, keep certain items that have a sentimental value, or make sure you have the retirement assets that will provide for your future needs, your lawyer can advise you on how you may be able to achieve your goals.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. Every divorce case is unique, and the division of property can be influenced by various factors, including jurisdictional laws. For personalized legal advice, please consult with a qualified attorney.