Asset Division: Tips On How To Properly Handle A Divorce

Marriages are made to last forever but people change over time and sometimes, the best answer is often to settle things legally. Divorce rates remain stable these past couple of years and it can be quite jarring to see the data firsthand. However, it’s time to face the reality that some marriages aren’t really made to last.

Divorce can be very messy and it’s highly important that you know how to handle things. As a married couple, you and your soon-to-be-ex have accrued a ton of properties and assets over the last couple of years. As all divorces go, dividing these assets can be the toughest part of the journey.

The problem with the division of assets is that both parties know what they want to get from one another. However, achieving a division that benefits both parties can be quite impossible especially in some really messy divorces. Here’s how you can easily divide assets during the divorce.

Understand What’s To Be Divided First

Before you even think about dividing your assets, it’s very important that you first know what’s to be divided first. This can be a bit tricky as individually, both of you have your own respective properties and assets which were then shared after your marriage.

In general, all of your assets and debts are going to be divided into one another. The division can be left up to a lot of factors but in most cases, the law will intervene regarding how everything should be split. Keep in mind that a 50/50 split isn’t always done in court. In fact, this is a very rare occurrence as well.

During this process, it’s best to list down all of your shares assets, and debts. This will make it easier for the court to find a way to divide the assets as fairly as possible.

Finding The Lawyer

If there’s one thing that you and your ex can agree on – at least for the last time, is that you should both find a lawyer to help with the division of assets. Legal experts at CharlesUllman.com say that the lawyer should be an independent party. A person who’s not at the employment of either end of the divorce.

In doing so, you can at least guarantee that the division of assets is going to stay as neutral as possible. There are lawyers that specialize in the division of assets. Don’t worry, they stay professional and objective when it comes to this part of the divorce. That’s because they know how messy this part can get.

In truth, lawyers and the law aren’t really necessary. You can avoid legal intervention if you and the other party decide to work together to split the assets fairly. This is very common in many divorces but it’s only usually done by those who are ending a marriage with peace and progress in mind.

When it comes to divorces, it’s always best to let legal experts intervene. They can save you a lot of time and headaches as you go through the hectic process of divorce.

5 Tips to Divide Business Assets

Get a Fair Business Valuation

A business assessment accurately determines the worth of the business so that you can share its assets throughout your divorce. Remember that just because you or your spouse had the business before getting married doesn’t mean the other party gets nothing out of it. That’s because any monetary value produced during a marriage is assumed to belong to both spouses under Family Code section 760. 

While determining the profits, numerous aspects are taken into consideration. A valuation will be impacted by the quantity of clients, size, location, and intangibles like intellectual property. Valuation will be much easier if you run a modest business that has generated steady revenue throughout the marriage.

Consider Buying Out Your Spouse

If you and your spouse decide that one of you will manage the business, you can set up a payment plan for that individual. This arrangement can significantly lessen financial strain, but it does necessitate a productive business. To conduct business in good faith, it is also necessary to have some amount of trust in the other.

Look at Other Options 

There are additional trading possibilities available if either of you is interested in owning the business outright and you don’t like the concept of payments made over time. You can exchange your stake in the business for any type of property, investment account, or other asset. Just make sure you get knowledgeable guidance on how assets are split in a Californian divorce.

Think Again Before Co-owning

After the divorce is official, it is a rare couple who wants to stay in touch, unless they have children. A clean business split is a sensible and practical choice. After receiving their respective portions of the business’ worth (not the shares), each partner should go for better opportunities.

Hire a Good Attorney

A “good” lawyer in this situation is one who is looking out for your interests. Your divorce shouldn’t take longer than necessary because of a business separation, especially if you prepare ahead of time. Work with a lawyer who wants to make the divorce process as short and easy for you as possible because divorce is already terrible enough.

The Process Of Dividing

With all these done comes the actual process of dividing the assets. The first thing you need to do is secure all of your personal properties first. These include your clothes, personal accessories – and basically just about any personal item that the other party has no ownership over.

Next, you will both need to divide the rest of the tangible assets as well. These include cars, furniture, appliances, and other assets that can be given in full ownership to another. It’s best to not talk about values during this stage. The best way around this is to simply have you and the other party pick things that you each want.

If there are any disagreements between some properties that you want for yourself, try to strike a deal with your partner. It can be very messy dividing tangible assets but you’ll both need to agree upon terms that both of you benefit from and this involves a lot of coordination.

As for properties, what most couples do is sell the property and split the amount received. Another way to split properties is to have one party get full ownership of the house while the other gets half of the value paid in cash.

Divorces are complex on their own already. One of the last things you’d want to do is make it even more problematic by not cooperating with the other party during the division of assets. Once you get over this initial hurdle, things can flow much smoother.

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