Assets are a major point of contention in many different divorce scenarios. This is why it is important to understand from the start how property and assets end up divided in divorce.
Most states will divide them equitably or equally, and it is possible to determine what goes where via mediation, too.
Community and separate properties
The Business Professor discusses the divisions of assets that occur during divorce. First: understand the two main categories that assets fall into during divorce. These are community and separate properties.
Community properties often include the assets that both spouses share. This may include properties with both of their names signed, properties that they bought with shared income, or properties bought with the use of a joint bank account.
Separate properties, on the other hand, usually do not get divided in divorce. This can include things like assets owned before the marriage, gifts given directly to one person, or inheritance that a person may have received during the marriage.
Changing properties
Some assets may become community property even if they started as separate property, though. For example, any money put into a joint bank account becomes community property. It is important for people to think well about where they want their money to go before depositing it for that reason.
Mediation often serves as a good way for people to negotiate over their community assets and determine who should keep what in a fair way. However, it is important to go into divorce talks understanding that both parties will likely need to do a little compromising to reach a good end goal.
