When it comes to divorce, one of the most difficult tasks is separating your assets. Your assets include your marital property, finances, physical goods, and so on. You will also divide debt if you have any. If you and your spouse are able to work this out on your own, you only need to let the court know about your agreement so it can be entered into your divorce decree. However, not everyone can handle this part of the divorce without attorneys. Here are some things you should know about debt and asset division in a divorce:
How Do You Divide Assets?
The first thing you need to do when dividing your assets is make a list of all the property you own together. Your list should include each asset along with its value. This includes checking and savings accounts, pensions, retirement accounts, your home, and investments. The division process should be as fair and equitable as possible, though the circumstances are different for each individual case. In many cases, it is not appropriate to divide everything straight down the middle. You can work out arrangements with each other by each taking items of similar value and based on your own interests. For instance, if your husband is an avid sportsman, he may take the fishing boat while you retain the antique furniture. The same thought process should be used when dividing other assets.
How Do You Divide Debt?
Any debt accrued in your marriage is marital debt and you will have to deal with it before the divorce is finalized. You will both have to take some responsibility for paying it. Debt can include credit card bills, personal loans, mortgages, and car loans. In most states, debt is community property, meaning both spouses are equal owners.
As you divide your debt, you should list each debt, the creditor, what the debt is for, such as a car or a house, and the amount owed to each creditor. You should attempt to work out which of you will pay which debt, keeping it as fair as possible. If you can have a plan made ahead of your court date, this is the best-case scenario. If the judge feels like your arrangement is fair, he or she may simply sign off on it and allow you to move forward. If you are unable to do this, the court will determine how the debt will be repaid and by whom.
Work with a divorce attorney, if necessary, to find the best solution for your situation.
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