Couples often have a lot of questions about the asset division process during a divorce. Who gets the house? Who keeps the car? How are savings divided?
While it may seem like conflicts between divorcing couples are inevitable, there are some issues that tend to create more problems than others. These include:
1. Hidden assets
A divorce can be a major financial setback for some spouses. A spouse may attempt to keep certain assets after a divorce by hiding them. Hidden assets may be transferred to separate financial accounts, used on large financial investments or given to a family member to keep.
In many cases, hidden assets will surface with a careful examination of the couple’s financial records. Once they’ve been located, everything belonging to the marital estate can be properly divided in the divorce.
2. Debt division
Couples may have a large amount of debt. Debt may be divided based on what is fair under Florida’s equitable division laws. That can create friction if the spouses don’t agree on the source and purpose of any given debt.
For example, one spouse may want each party to keep their own credit card debt, but the other may insist that the bulk of their debt was from a vacation that they took together and should be divided equally. Conflicts like that can drag a divorce out for an indefinite period of time.
3. Commingled assets
A spouse may keep separate assets they owned before a marriage, inheritances, and gifts after a divorce. However, absent a marital agreement that designates the property as solely belonging to one party, those assets can cease to be separate if they are commingled with marital funds.
Disputes over what property is separate and what is part of the marital estate can sometimes escalate conflicts during a divorce and lead to protracted battles.
Professional legal guidance can help with asset division during a divorce. A strategic approach to the asset and debt division process can help keep things moving and eliminate a lot of unnecessary strife.