Working Out Property Division During Divorce

Divorce property division can be difficult for couples to work out especially if they are not on speaking terms. Property division and divorce laws vary from state to state. Most states require that the parties enter into a marital settlement agreement which sets forth the division of their personal property, real property, other assets, debts and liabilities. Typically, property division includes the following items:

Your house and other real estate investments, personal property such as furniture, art, collectible items such as antiques, jewelry, automobiles, boats and other personal items.
Issues regarding child custody, child support, child visitation, and spousal support
Ordinary living expenses
College tuition and related expenses
Medical and dental insurance
Division of bank accounts, profit sharing, pension and other retirement accounts, life insurance policies, annuities, stock portfolios, stock options and bonds
Joint credit card, car and other installment debt and taxes

Determining a fair and just division is sometimes hard for parties to do on their own, and they may require legal help from their attorneys or the court. It’s a good idea to speak with a family law attorney to find out your legal rights and obligations.

Dividing Up Property

Property is divided up according to community property or equitable property division depending on your state's laws. Some property is considered separate property and is not included in the property division. Separate property is generally property you acquired before marriage or property that was gifted or inherited during marriage. A divorce property division worksheet is a good place to start to determine what property you want to divide up and how you want to handle community debts. Either you or your attorney can use it or you and your spouse to help you make calculations. Divide the list in two categories, your share and your spouse’s share. Most people’s largest asset is their home and other investment or vacation home properties so start with those items first. Here are some things to consider in making your calculations regarding your home and other investment property:

When you purchased the property
The purchase price
Down payment and source
Original and current mortgage amounts
Source of mortgage funds and property maintenance and improvements, taxes and insurance

You can also calculate each spouse’s share of business assets, bank accounts, cars and other assets in a similar manner. Once you have it all down on paper, it will be easier to determine.

Consult with an Attorney

Before you file for divorce, you should consult with a family law attorney for advice. The attorney is an expert at family law matters, and can explain the divorce laws, and help you negotiate a property division settlement with your spouse.

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