When you are considering leaving a long-term marriage, you must understand that the practice of dividing up assets can be fraught with issues. While you may not need to worry about custody issues with older children, that problem might be replaced by trying to divide more than the usual amount of property. To learn more about how to achieve a fair and balanced property division agreement, read on.
What Is Marital Property?
Before going too far, know what is meant by marital property because not everything the couple owns falls into that bucket. Marital property is anything purchased or acquired during the marriage, except for any gifts that were given to only one party and inheritances. If it was owned before the marriage, it's considered separate property and is not part of the property division agreement.
How the States View Property
The states are divided into two ways of looking at marital property. Most states use the equitable distribution method which means the entire marital debt and property settlement is considered to make things fair. For instance, when one party takes on a bit more debt than the other, that party may also be awarded more marital property. A few states practice community property laws and that means the assets of the couple are all owned 50/50.
The Family Home
For most couples, the home takes up almost all the marital property. Each party should consider whether they can afford to keep the house and what it entails. For couples who have been married for a long time, this could be an opportunity to downsize to a smaller home for each of you. In that case, the home can be sold, and the profit can be divided after paying off any mortgages. Other ideas for dealing with the house include one party buying the other out for their share.
Don't Forget About Retirement
Even though many people are working longer and longer, divorce is a great time to think about your retirement. Don't overlook this asset because certain types of retirement accounts, such as a 401(k), are considered marital property, and both parties are entitled to some of the funds even if only one party added funds to the account.
Social Security Considerations
Another frequently overlooked area involves Social Security benefits. Even divorced parties are eligible to be paid some of their ex-spouse's benefits if they have been married for at least 10 years. If you are approaching the 10-year mark and your spouse made more money than you did in the past, consider staying married for a while to take advantage of that asset.
Contact a law firm like Knollmeyer Law Office, PA to learn more.
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