How Are Property And Debts Divided At Divorce
In the case of a divorce between couples, the first step they would take it to determine how to divide their debts and property themselves without employing a third party such as a mediator, a lawyer or even simply leaving the decision up to the judge. However, if a couple finds it difficult to agree mutually as to how the property and debts get divided between them, they can resort to submitting a property dispute in court which will make use of the laws of the State to divide the property and debts between them. The court will use one scheme to divide their property stated under two basic schemes known as community property and equitable distribution. The couple’s debt will also be divided under these same principles.
Community Property
In the following States property owned by each spouse is referred to as separate property or community property which means that the property is owned by both spouses. When a couple divorces, community property under the law states that the property is equally divided between the two persons, while the couple who own their separate properties gets to keep his or her property separately under the separate property law. The States following these principles are;
Alaska
Arizona
California
Idaho
Louisiana
Nevada
New Mexico
Texas
Washington
Wisconsin
Puerto Rico
Equitable Distribution
In the rest of the States, all earnings and assets accumulated by the couple during their marriage is divided fairly, but not necessarily equally. In certain cases, the Judge may request the couple to use their separate property in order to ensure that the settlement made between them is fair to both parties.
Dividing property between spouses does not always mean that it is a physical division. Sometimes, each spouse may be awarded a percentage of the property’s total value as stated by the court. Each spouse will be awarded personal assets, property and debts where the entire worth of these adds to the percentage given. It is essential that spouses refrain from hiding their assets in order to protect them from being divided.
