During a divorce, the issue of how assets are divided becomes important. If there are hidden assets, the division of them may be difficult. If the other party has acquired assets through work or investments, the value of those assets may have increased since the couple’s marriage. The other party’s contributions may have increased the value of these assets, which can be used as a basis for an award of these assets in a divorce.
Whether you are planning to divorce after a long or short marriage, you may be concerned about the financial impact of your decision. The goal of dividing assets in a divorce is to put each party on an equal footing financially. However, this does not always mean that the division is an even one.
In fact, the division of assets in a divorce can be complicated. For instance, in a long-term marriage, the lines of ownership may become more blurred.
Generally, the IRS views a couple as married until they obtain a divorce decree. This means that the parties have a legal duty to support one another until the divorce process is completed.
In a long-term marriage, the most significant assets are likely to be the home. It is common for a court to award the former home to the spouse with primary custody. The courts are not likely to award the home to the other party unless they believe that the spouse is unable to afford the house on their own. Consider working with qualified attorneys in The San Diego Divorce Attorney to ensure a successful case.
During a divorce, non-marital property can be converted into marital property. There are some factors that can affect the process. The first is whether the property was purchased during the marriage or if it was acquired prior to the marriage. Secondly, the property can be enhanced or decreased in value. The court may consider these factors as part of the process.
One of the most common ways in which a property is transformed into marital property is through commingling. This occurs when a spouse pays bills on an account and adds his or her spouse to the account.
Another common way in which a property is commingled is through inheritance. If the inheritance is in a joint-owned account, then it is considered marital property. In addition, if the spouse contributed to the increase in the value of the property, he or she may be entitled to reimbursement.
The process of determining whether a property is considered marital or non-marital is complicated. In some cases, a court will impose a lien on the property. In other cases, the parties can transfer the property on their own.
During a divorce, a spouse may be entitled to an award for premarital property that increased in value due to the contributions of the other spouse. This is known as transmutation. Often, the balance of a retirement account on the date of the marriage is used to calculate the premarital value.
Separate property is usually real estate. It may also be cash gifts from third parties, or property acquired before the marriage.
The court may also make an “equitable distribution” of marital assets. This is not necessarily a 50/50 division, but rather a fair distribution, based on factors such as the income and earning capacity of each party, the duration of the marriage, and the wishes of the parties.
Some examples of non-marital property include inheritances, stocks and bonds, IRAs, bank accounts, and cars. These items are not subject to an equitable distribution unless they are actually given to the other spouse.
During a divorce, spouses may hide assets to protect their financial position. If you suspect that your spouse is hiding assets, it’s important to speak with an attorney. Your lawyer can investigate and find out how to locate your hidden assets.
Your attorney can use forensic accountants to uncover your hidden assets. A forensic accountant can look at tax returns, bank statements, and other records to find out if you have hidden assets. This can help you get a fair settlement in your divorce.
If you suspect that your spouse has hidden assets, you should speak with an experienced high asset divorce attorney. Your attorney can help you track down your hidden assets and hold your spouse accountable. Your attorney can also recommend a financial professional to analyze your business income.
If you are a party to a divorce, you will need to disclose all of your liabilities, including liabilities relating to your business. If you don’t, your spouse may be able to claim the money you earned during the marriage. This can result in you paying your ex-spouse’s legal fees.