Understanding How Assets Get Divided In A Divorce

Sadly, not all marriages work out. Often couples wind up filing for divorce. When this happens, the property that the couple owns needs to be divided equally between the two parties. It can be a complex process -- especially if the two parties can't agree on who gets what.

The method by which assets are the divide in a divorce varies from state to state. For instance, in a community property state, each spouse retains ownership of any items that they owned on their own before they were married. The ultimate goal of the laws surrounding the distribution of property is to make sure that it is fair for both parties. Unfortunately, this isn't always the case.

Because of this, most people hire divorce lawyers to help them work out which assets go to which party. Typically the most contested items include houses, cars, valuable household items and items with sentimental value. Trying to determine how best to divide fairly these items between a husband and wife can be challenging.

Typically, the process starts by making a list of all of the assets that the couple owns. Next to each asset, it should be noted whether or not it was own by either the husband or wife before the marriage, or whether it was acquired after the marriage had already taken place. Items that should include on the list include cars or trucks, homes, land, vacation properties, bank accounts, investments, collectible items with high values, furniture, appliances and retirement accounts along with any other assets that the couple owns jointly.

The best case scenario is that the couple will be able to reach agreement on their own without needing to go to court. Waiting for court to distribute assets to the two parties can not only take a long time but can also cost a lot of money in legal fees. Because of that, many couples try to work things out on their outside of court. It is where lawyers can help since they can negotiate with the other party's lawyer on each spouse's behalf. It is often easier than having the two parties meet face to face, simply because there are often bad feeling surrounding a divorce.

If both parties can agree on the division of assets, then all that needs to happen is for a property division agreement to be signed. Once this happens, the divorce will be finalized.