Do You Know How Property Division Works During Divorce?

If you’re at the point of filing for divorce, there are many issues that may have crossed your mind. One of them is almost certainly how the property will be divided between you and your spouse. If possible, you can choose to come to an agreement about it without involving the courts. In cases where the process may be too acrimonious or potentially unfair to you, the division of property can be handled through the legal system.meek law firm charlotte nc business contract law jonathan meek family law estate administration alimony

The first thing to note about this process is that different states have different ways of doing things. The main issue in property division is distributing the assets acquired during the marriage. The following post explains this:

Marital property includes retirement accounts, savings accounts, and even business interests, along with other physical property such as a house or vehicle. Regardless of how the property is titled, it is considered marital property if it was acquired during the marriage.

Marital property includes:

  • Property acquired after the marriage
  • Property acquired prior to the marriage in anticipation of the marriage (such as a house purchased for the couple to live in once married)
  • Pre-marital property placed into joint ownership. Read more at Jes Family Law…

It’s best to be clear on what property needs to be divided so that you have appropriate expectations from the beginning.

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If you choose to go through the court system to split your property, you need to be aware of a few things that could create trouble later on or complicate the process. The following post has details:

3 Tips For Dividing Marital Property During Divorce

The process of dividing marital property begins with taking an inventory of all you, as a couple, have acquired during the marriage. Anything you owned before the marriage and anything inherited during the marriage will not count as marital property.

Being fair, open and honest during this time is the best path to take. If you have money socked away in a personal account, that money should be considered the property of both spouses.

You may think you can get away with hiding marital assets, but divorce attorneys are smart and one of the first things they will look for are assets that are tucked away out of sight. To keep from being penalized later on in the process, it is best to reveal all in the beginning of the process. Read more at Liveabout…

Take this crucial tip to heart: You’re better off safe than sorry when things involve the law. Declare all your wealth from the outset to avoid being punished by the court.

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Remember that property division also comes with tax obligations. The following has more:

Tax on divorce – division of property and capital gains tax

When couples separate, one of the last things they might be thinking about is tax.

Unfortunately, the division of the matrimonial home and other properties between the couple may trigger a capital gains tax bill (“CGT”).

CGT is a tax charged on the transfer (or sale) of a property. It is a tax on the increase in value since the property was acquired. CGT is charged at higher rates for residential properties than for other assets, being charged at 18% (for basic rate taxpayers) or 28% (for higher rate taxpayers). In the current 2017/18 tax year, the first £11,300 of gains for each of the couple is CGT free. Read more at Brodies…

Divorce is often complicated and emotionally overwhelming. Your best outcome will be achieved by hiring a skilled attorney to protect your interests. If you need a family law attorney who is experienced in divorce and property division in Charlotte, call Meek Law Firm at (704) 848-6335 or complete the contact form on our website and we’ll get in touch with you.