One of the things that has to be done before you can legally end your marriage is splitting up the marital estate. This isn’t always easy, particularly when there are significant and complex assets.
The first step in property division is determining what’s included in marital assets. Anything that’s separate property and anything that’s included in a prenuptial agreement isn’t part of the marital estate, so those won’t have to be figured out.
The marital estate includes debts
Many people think of the marital assets as the only thing that has to be divided, but that’s not the case. The debts that were part of the marriage also have to be split during the property division process.
In some cases, it’s possible that marital assets can be sold so the proceeds from them can be used to pay off some of the marital debts. This means that fewer assets will have to be assigned to a party.
There’s a risk that comes with assigning debts during property division. Creditors don’t have to abide by the divorce order, which means that they can hold both parties accountable for the balance.
Logical thinking must prevail
Some assets have an emotional tie to them. It’s never a good idea to think about the property from an emotional standpoint. Instead, think about each decision from a logical standpoint, which might be easier if you have your budget for after the divorce set. As you think of options, remember that you’ll have only your own income for bills.
It’s critical that you take the necessary steps to protect your own interests during the property division process. Having experienced legal guidance can help to ensure you understand your rights and options as you go through each step.