Your financial settlement is how your assets and debts will be resolved when you get a divorce. This is the amount that you'll be required to make payments for maintenance.
The article covers the following issues: Matrimonial assets and other non-matrimonial assets, financial assets (stocks and bonds, as well as property) as well as child support and maintenance payment.
Matrimonial assets
In divorce proceedings, determining the value of marital assets is usually a daunting task. It's a difficult task due to the fact that assets can be merged and mixed in the marriage.
If you're a party to a prenuptial/postnuptial contract which states that some assets should be considered separate and you both own the marital assets. The court will equally divide the marital assets among you and your spouse upon divorce.
The value of assets financial settlement can be difficult to estimate because the values of assets will increase with time. This is true especially of the heirlooms and collectibles. The court could employ several methods in determining the value of a piece. The methods include the costs-based approach, income-based approaches and replacement value. In some instances an expert in valuation may need to be consulted for an expert opinion regarding the worth of a particular asset.
What the way in which an asset is acquired could affect the value of an asset. In the case of example, if you included a particular piece of artwork to the union as your own property, and encouraged your spouse to work on the piece to enhance and improve the quality of its appearance, this may affect the value of it in the future. This could increase the amount the art is worth and would have an impact on fair distribution.
If you purchase an item together with the help of your spouse, as a joint investment by using money obtained during the marriage, it can also gain value and be an asset of the marriage that can be with the possibility of equitable division on divorce. This is why it is essential to keep your financial accounts separated and never mix those of your spouse in the event that you need to safeguard an asset, such as a classic automobile that you purchased with money earned prior to your wedding.
In addition, if your separate property is used to purchase an item thought to be marital property, this could result in a comeling. If you have funds at a bank earned prior to your wedding. Your spouse has access and become member. It could be enough for you to change your separate account to a marital property because the assets have been mixed and then you've transformed the cash from marital to non-marital.
Dissipation claims
Another factor that can impact the value of an asset could be an assertion that one person misused or squandered assets during the relationship. The issue of infidelity during divorces is a common factor. Your soon-to be ex-spouse may get the property as part of your divorce settlement when they prove that they racked up the debt and that the value of the asset was reduced.
If you are considering valuing assets for equitable distribution purposes, the most important thing to remember is that no method of evaluating an asset is correct or incorrect. One of the best ways to make sure that your assets are handled fairly is to consult an expert family law lawyer. We will help you determine and locate assets, and determine the most appropriate way to deal with them in the divorce process.