Divorce is not just a separation of lives – it is a separation of property. Equitable distribution of all assets, including any shared house or possessions, is part of divorce proceedings.
The Procedure for Dividing Possessions in a Divorce
Wondering how personal property is divided or split during a divorce? Don’t worry – you’re not alone. Millions of divorcing couples undergo the challenging task of dividing belongings. During or at the time of divorce, the personal property is divided between the parties in an equitable fashion, which may or may not mean equally. Sometimes it is difficult to equally divide personal property because specific items are unique. However, it is preferable that the divorcing couple reach an agreement on how their specific belongings are going to be divided. One way to do this is to create an inventory list of all property owned. Then, make division decisions using that list. If couples cannot agree, then a court will decide. However, litigation in this situation may cost more than the property itself.
How Do I Keep My House in a Divorce?
If couples cannot come to an agreement about who gets to keep the house in a divorce, it is up to the courts. Factors such as child custody and financial situations all play a part in determining which spouse can keep the house. It may be possible for the spouse who wants to keep the house to refinance it. This will both remove the spouse’s name from the mortgage and gain access to a portion of the equity to pay the other spouse his or her equitable portion. Consultation with a mortgage broker during divorce proceedings will be necessary to consider options and challenges. It should be noted that the burden of selling a house in addition to divorce can be stressful for everyone, and extra difficult for any children involved. However, if keeping the house causes too much financial or even emotional strain on the spouse to whom it was awarded, selling it can sometimes be the better decision in the long run.
Is There Anything That Does Not Get Divided?
You will not need to split every dollar you’ve ever made as part of your divorce settlement. Only the assets (and debts) that are considered marital property are involved in the equitable distribution. This includes anything that was earned or incurred during the marriage. However, money earned before you were married or anything that was gifted to or inherited by only one spouse during the course of the marriage is treated differently and other factors such as comingling may come into pay. However this is a complex area of the law that a divorce lawyer can assist you with. Furthermore, if an asset acquired prior to the marriage grows in value during the marriage, that growth is typically considered marital property. This could include real estate value, dividends, and even the value of a business one spouse owns. The courts presume equal contribution to the marital property. However a case can be made for equal division not being equitable (fair) if it can be proven that both parties did not contribute equally. A family law attorney can help you determine what may be marital property, and how best to divide it. However, one factor that is not considered in equitable distribution in Oregon is which party is at fault for the divorce.