Division of property

What is the Property Division in Family Law?

In family law, property division refers to the process of dividing marital assets and debts between two spouses when they decide to end their marriage. This can be a contentious issue, especially for business owners who have invested significant time, money, and effort into their companies. The goal of property division is to ensure both parties receive a fair share of the assets and debts accumulated during the marriage.

Types of Property Division

In family law, property is categorized into three main types: community property, separate property, and mixed property. Understanding these categories is crucial for business owners and individuals alike.

Community Property

Community property is any asset or debt acquired during the marriage that is jointly owned by both spouses. This includes:

• Income earned during the marriage
• Real estate purchased during the marriage
• Investments made during the marriage
• Bank accounts and other financial assets accumulated during the marriage

When dividing community property, courts typically follow a 50/50 split. However, this can vary depending on individual circumstances.

Separate Property

Separate property refers to assets or debts that were owned by one spouse before the marriage or acquired after separation. This includes:

• Inheritance or gifts received by one spouse
• Assets or debts inherited by one spouse
• Personal injury settlements or awards received by one spouse
• Pre-marital assets that remain separate

Separate property is generally not included in the division of marital assets and debts.

Mixed Property

Mixed property is any asset or debt that has both community and separate components. This can include:

• Real estate that was purchased with community funds but has increased in value since then
• Business interests that were started before the marriage but have grown significantly during the marriage
• Retirement accounts that have been funded with both community and separate funds

Mixed property requires careful evaluation to determine how it should be divided.

Factors Considered in Property Division

When dividing property, courts consider several factors to ensure a fair distribution. These include:

Length of Marriage

The longer the marriage, the more likely it is that the court will consider it a “marital asset” and divide it accordingly.

Income and Earning Capacity

The court will assess each spouse’s income and earning capacity to determine how much they can support themselves after the divorce.

Contributions to the Acquisition of Property

The court will consider how each spouse contributed to the acquisition of the property, including financial contributions, homemaking duties, and childcare responsibilities.

Children’s Needs and Well-being

The court will also consider the needs and well-being of any minor children, including their educational needs, healthcare requirements, and emotional well-being.

Exceptions to General Rules

While these factors are considered in most cases, there are exceptions. For example:

• If one spouse had significant separate property before the marriage or inherited separate property during the marriage, it may not be subject to division.
• If one spouse concealed assets or liabilities during the marriage, they may be subject to equitable distribution.
• If one spouse has committed domestic violence or abuse during the marriage, they may not be entitled to an equal share of marital assets.

Conclusion

Property division can be a complex and emotional process, especially for business owners who have invested their heart and soul into their companies. Understanding the basics of family law can help you navigate this process more effectively.

By being informed about these concepts, you can better prepare yourself for a smoother divorce process. Remember to consult with a qualified attorney who can guide you through this complex legal landscape.

Bukh Law P.A Division of Property legal services:

1. Property Valuation:

   Identifying and valuing assets, debts, and liabilities in the marital estate to determine their value and ownership.

2. Marital Settlement Agreements:

   Drafting and negotiating agreements outlining the division of property, spousal support, and other financial arrangements.

3. Asset Tracing:

   Tracking down and identifying hidden or concealed assets to ensure a fair division of property.

4. Pension and Retirement Plan Division:

   Dividing retirement plans, pensions, and other benefits in a way that meets the specific needs of each spouse.

5. Business Valuation:

   Evaluating the value of a business or professional practice to determine how it should be divided between spouses.

6. Litigation Support:

   Representing clients in court when disagreements arise over property division, and advocating for their interests in court proceedings.