Property Division - Overview of Dividing Assets and Liabilities

What is property division?

Property division or asset allocation is one of the two main financial categories of decision-making addressed in divorce and it involves making informed decisions about dividing the assets and liabilities between you and your spouse.

• This division includes all properties, debts, financial accounts, investments, real estate, personal possessions, and any other assets owned or acquired during the course of the marriage.
• Starts by establishing a snapshot in time of everything you have now in one or both of your names.
• Then you determine who will keep what or how things will be divided.  

How do you address property division in divorce?

You are creating a marital “balance sheet” and then dividing up the assets and liabilities within it.

• A clear and objective understanding of your assets and liabilities. Facts in property division are indisputable numbers and valuations that form the foundation of equitable distribution.
• Laws vary by jurisdiction
  • Community property states
  • Equitable distribution states
• Both essentially differentiate between assets and liabilities created during the marriage (marital property or joint property) and those from prior to the marriage, or gifted or inherited during the marriage.
• Marital or joint property is commonly divided equally or in another manner meant to be fair between the two parties.
• Non-marital or separate property is typically awarded to one specific party

What's next?

In this property division section, we'll delve into understanding these legal frameworks and how they apply to your situation.

We will help you think about liquidity, taxes and the timing of certain assets in a property division so you are fully informed before making decisions.

We aim to equip you with the knowledge, tools, and confidence to navigate the complex terrain of property division.

Assess your post divorce financial goals with this quiz.