Divorce and property division
Divorce signifies the end of a legal partnership between two people. While the idea of filing for divorce is simple, the process can be complicated and time consuming. This is due to a variety of potential challenges, such as those associated with property and debt division.
Most property that was previously shared by the couple will be divided. One exception to this rule is if either spouse brought something of value into the relationship. In this case, they are able to keep that property.
In addition to dividing assets, don’t overlook the fact that the same holds true with debt. Debts accumulated during the marriage must also be divided among the spouses. It is easy to become so focused on the division of property, such as who will keep the home, that you overlook the fact that debt also comes into play.
Regardless of your situation, there are tax implications associated with divorce and property division. Not only can your situation be impacted in the year that you filed for divorce, but this may also be true in the future, such as when you retire.
Some couples are able to make their way through the property and debt division process without much hassle. Others run into many issues, as both parties fighting for their rights in hopes of obtaining as much as possible.
You don’t want to be surprised by anything that happens after a divorce. When you know what to expect in regards to property division, you can avoid trouble that often leads to wasted time and money.
Source: FindLaw, “Divorce and Property,” accessed June 18, 2015