Divorce Can Be A Stressful Process

Divorce can be a stressful and emotionally charged process, especially when it comes to dividing assets and debts accumulated during the marriage as a personal injury lawyer can explain who has seen personal injury settlements divided. Understanding equitable distribution, a common method used to divide marital property, can help spouses better navigate this complex area.

Equitable distribution refers to the fair — but not necessarily equal — division of assets and debts between spouses during divorce proceedings. Unlike community property, where assets are typically split equally, equitable distribution takes several factors into account, aiming for a fair outcome tailored to each unique situation.

When determining how assets should be divided, courts generally consider several important factors. These may include the length of the marriage, the age and health of each spouse, their respective incomes and earning potentials, and any contributions made by either spouse during the marriage. Contributions are not just financial; they can also include homemaking, childcare, and support for the other spouse’s career or education.

Assets subject to equitable distribution typically include real estate, vehicles, retirement accounts, investment portfolios, household furnishings, and any businesses started or expanded during the marriage. Debts are also divided equitably, meaning credit card balances, mortgages, car loans, and personal loans incurred during the marriage are allocated in a manner deemed fair by the court.

An important aspect of equitable distribution is distinguishing marital property from separate property. Marital property consists of assets and debts accumulated during the marriage, regardless of whose name is on the title or loan. Separate property generally refers to assets acquired before marriage or through inheritance or gifts made specifically to one spouse. Usually, separate property is excluded from division unless it has been commingled with marital assets or used to benefit both spouses significantly.

To achieve an equitable distribution, spouses are encouraged to engage in negotiation and mediation, if possible. Reaching a mutually agreeable settlement outside of court allows both parties greater control over the division process, reduces litigation costs, and often results in outcomes more closely aligned with their individual priorities as our friends at Garrett, Walker, Aycoth & Olson, Attorneys at Law can explain. However, if negotiation isn’t successful, the decision will fall to a judge who will apply the relevant criteria to determine an equitable division.

Ultimately, equitable distribution strives for fairness based on each spouse’s contributions and future financial needs rather than simply splitting assets down the middle. It recognizes the diverse roles spouses play in marriage and seeks to fairly compensate those roles financially upon divorce. While the process can feel overwhelming, having clear expectations and a good understanding of how courts view equitable distribution can significantly reduce stress and uncertainty.

Consulting with a knowledgeable divorce attorney experienced in equitable distribution can provide invaluable guidance and representation throughout this difficult process. An attorney can help protect your interests, clarify complicated legal concepts, and assist in reaching the most favorable possible outcome. Reach out to a lawyer near you today to determine how an equitable distribution would work with your assets.