Financial settlements are how your debts and assets will be settled in the event of a divorce. This is the sum of the maintenance that you may be expected to be liable for.
The following will be covered in this piece: matrimonial and non-matrimonial assets, financial assets, such as stocks bonds, as well as real estate, and child maintenance as well as the payment of support.
Matrimonial assets
A common issue during divorce proceedings is to determine the value the marital estate. It's difficult to assess the worth of the assets as they are often commingled during the marriage.
If you have a prenuptial/postnuptial contract that specifies that some assets are to be treated as separate and you each own the marital assets. The courts are able to fairly divide the marital property between you and your spouse in divorce.
The value of an asset may be difficult to determine due to the fact that their values tend to grow over time. Particularly, this is the case with heirlooms and collectibles. A court can employ a variety of ways to determine the worth of a piece. Methods include cost-based approach, income-based approach and replacement value. In some instances the services of a valuation expert might be necessary to provide an expert opinion regarding the worth of a particular asset.
The way an asset was purchased could affect the value of an asset. As an example, if for instance you brought a piece of art into financial settlement the marriage as your private property, and then you encouraged your spouse to make improvements on the piece to enhance and improve its condition, then this may affect the value of it in the future. This could increase the amount the art is worth and will affect fair allocation.
If you bought the item along with the help of your spouse, as an investment jointly made using the money that was earned in union, the item could gain value and be the property of your marriage, which is which is subject to equitable division in divorce. That's why it's essential to keep your own personal financial accounts apart and to not combine them with marital ones regardless of whether you wish to secure an asset like a vintage automobile that you purchased with cash earned prior to your wedding.
In addition to that, if the private property is used to purchase an item classified as marital property, it may trigger the comingling. For instance, suppose you have a savings account that has money you earned before your marriage and then you join your spouse to the account and allow them access. The account is sufficient for turning the assets you have separately into marital ones because they've been merged and you've converted the money you did not have into marital.
Claimants for dissipation
The final major element that could affect the value of an asset is a case of one party has abused or destroyed assets during the marriage. This is particularly common during divorce when it is believed that infidelity has been a contributing factor. If your soon-to-be ex-spouse can show that they squandered money from the marriage and diminished the worth of the assets, they can award the asset to them as part of a financial settlement.
The most important thing to keep in mind when you are evaluating your assets for the equitable distribution of assets is that there's not a wrong or right way to do it. A good way to be sure that your assets are dealt with in a fair manner is to speak with an experienced family law lawyer. Our lawyers can aid in the search for and identification of assets and will then help identify the best approach to these assets in the event of divorce.