How are assets divided during divorce?
When divorces are brought to court, there are many issues that need to be decided upon. These marital issues can include child custody arrangements, child support, spousal support and the division of assets. While divorce is a difficult enough decision to make, marital issues are just hard. Splitting a life between two couple can be an emotional time for the couple. When judges make their decisions, they use the concept of equitable distribution to divide the assets between the spouses getting divorced.
Equitable distribution is a concept that courts use across many states. Through this distribution process, marital assets between spouses are divided in a fair and just manner.The judge will use their discretion to assess factors that influence the division of the assets. However, equitable distribution does not mean assets will be divided equally between the divorcing spouses.
What factors does the judge take into consideration?
Since equitable distribution decides a fair and just manner to divide marital assets, judges must take many factors into consideration. They are aiming to provide a fair outcome for both parties involved. The judge will assess factors, such as each party’s contribution to the marital property, their health, their age, tax consequences and economic status associated with each party. After considering these factors, the judge will make their decision. Since each couple brings a different number of possessions that are valued at varying amounts, each divorce case regarding the distribution of assets can be vastly different.
Are high net worth divorces decided differently?
For high net worth divorces, there may be more assets being divided. Since individuals with a high net worth have acquired assets, possessions and debts that have given them such a high net worth, this process can be more tedious. A judge will consider all the same factors and much more. They need to take into account all aspects that are being questioned and later divided. These divorces can be impacted by prenuptial agreements, 401(k) plans, defined benefit pension plans, IRAs, restricted stock or stock options, business ownership, professional licenses, involved tax structures and planning, offshore assets, bonuses that do not vest immediately, real estate holdings and widespread investments. If a prenuptial agreement or postnuptial agreement is in place, this may help to alleviate some of the load that is being decided for distribution.
For all divorces, it is beneficial to have legal aid to ensure your best interests are being taken care of. You want to make sure you are getting what you are entitled to.
The Law Office of Peter L. Jameson, PLLC is an experienced divorce and family law firm located in New City, NY. It is essential to retain effective legal guidance during such pivotal times in life. Contact our firm today to discuss your legal matter and get the quality legal representation you deserve.