The idea of divorce only makes people feel overwhelmed. You and your spouse spent a number of years before deciding to end the relationship. And now you wonder how you will separate your shared lives back to the individual one.
The process has its ups and downs. And depending on your circumstances and ability to work with your ex-spouse, your case could have more ups than down or vice versa.
As you go through property division proceedings, you may have concerns about how your property will fair. It hits many individuals, but with proper preparation and the help of a Knoxville divorce attorney, you could feel less overwhelmed by the idea of separating assets.
Understanding Property Division
It is a significant part of the divorce process. You desire to keep as many assets and possessions as possible, but the loss is a part of the experience you need to accept. While we know, acceptance can be difficult but especially when it is your possessions on the line. Before you get depressed about what you have lost, you need to understand which assets are on the line and which are not. And that is what makes learning a marital asset or non-marital asset.
Understand Your Finances
Many people proceed further into their divorce proceedings. You think that they understand their assets and debts only to find themselves at a loss. When you are not familiar with the ins and out of your finances, you could put yourself at a disadvantage. So prepare for everything you need to know before your divorce goes to trial. While preparing for any legal proceedings, you want to get records of financial transactions, retirement accounts, bank accounts, tax returns, and work-related records.
After knowing where your property stands, understanding your debt and your partner’s debt could prove beneficial. This information will help you decide whether you could land on the hook for more debt or you anticipated. And allow you to find strategies for avoiding negative outcomes relating to that debt.
Marital Vs. Non Marital Assets
Once you understand your finances, look more closely at your property to determine which assets fall into the marital category and which will fall into non-marital categories. Non-marital assets will remain the property of whichever person originally owned them. Knoxville divorce attorneys help you know your non-marital property; it could help you understand which assets you may retain after divorce and ones that should not go into property division proceedings.
Of course, some assets come under inspection. If you believe that an asset is non-marital property, but your spouse considers it marital property. You will need legal documentation to prove that the asset belongs solely to you.
Know that the property division laws of your state could prove useful to you. If you could find it beneficial to explore local legal resources or Knoxville divorce lawyers to obtain reliable information on this area of family law that could impact your divorce proceedings.
You also need to worry about the commingled property. The assets and debts were non-marital but were traded in to get a new property. Or repaired or revamp during the marriage with marital funds or non-marital debts paid with marital. For instance, cars can sometimes find themselves in this category due to their upkeep and need for payment.
Businesses And Money
To separate the property, other assets like business properties may require creating a business entity, such as a limited responsibility company, a trust, or a corporation. However, the income-producing from the business during the marriage increases the value of business property. So still, it is considered marital property.
When it comes to money, it can be difficult to track when it became a marital asset or how much of it is non-marital. Generally, joint accounts are treated as a marital asset, given that both parties have access to the money that goes into it. It is because as soon as a divorce is on the horizon, you need to keep accounts separate and track all transactions involved with marital assets.
Beware Of Any Settlement Offers That Look Too Good
Post-divorce, both their children and spouses need to make compromises in their lifestyle. If a settlement does not provide enough money to live on, it will likely stay the same in the future. When possible, get payments upfront even if you get a loss in total. Secure all your payments with assets and insurance. It may be worth consulting a family law attorney who can review a settlement offer and ensure your rights are fully protected.
Don't Fail To Understand Your Finances!
One undeniable fact of divorce is that two households cost more to operate than one. Many divorcing couples fail to realize that their divorce settlement must last a significant amount of time or even the rest of their lives. With proper financial planning, Knoxville divorce attorneys help to transition from a married to a single lifestyle. It will focus on your financial goals, develop realistic expectations, and produce sound plans for the assignment and financial resources division.
