The Complete Guide to Splitting Assets in a Divorce
What happens when you reach the next step—splitting assets in a divorce? Will you work together with your spouse and divide them equally, or will you let a judge decide on your behalf? Before making this decision, you should know all about splitting assets in a divorce. DoNotPay will also show you a way to a low-cost divorce that doesn’t involve hiring an attorney!
To understand how the assets are divided during a divorce, you must become familiar with different types of property:
- Community property
- Separate property of one spouse
- Mixed property
Community property includes all the assets and earnings that were acquired by any of the spouses during the marriage.
Any assets that each spouse owned before getting married fall under the separate property category—including property that they inherited, acquired by their separate funds, or received as a personal gift.
Property that’s part-separate and part-community is typically designated a mixed property. It’s any property whose status was changed from separate to marital by the spouses.
For example, if one spouse owned a home before the marriage, and the other spouse made a contribution to the home with joint assets after they got married, they have a marital interest in the home.
Courts use one of the following two systems to divide property:
- Community property—In a divorce, community property is divided equally between the spouses, and each spouse gets to keep their separate property
- Equitable distribution—All assets and earnings collected during the marriage are divided fairly. That doesn’t mean the division of assets will be equal. The judge will consider the following factors when dividing assets:
- The duration of the marriage
- Income, debts, and property of each spouse
- Contribution that each spouse made on the other spouse’s educational and professional opportunities
- One spouse’s status of a primary caregiver (if there are children involved)—they usually get the house
- Physical and mental health of each spouse
Check out the table below to find out how the states divide assets in a divorce:
The division of assets depends on the type of divorce you opt for. You can either have a contested or a friendly, uncontested divorce. If you go with a contested divorce, a judge will decide how your assets will be split. In an uncontested divorce, you get to decide how you wish to divide your property.
Opting for an uncontested divorce means you and your spouse won’t need to engage a lawyer or attend court hearings since you’ll be the ones defining the terms of your divorce. If you and your spouse can’t agree on all aspects of your divorce, you can try divorce mediation. A mediator can facilitate communication between you and your partner and help you reach a mutually acceptable agreement.
Once you establish the terms of the divorce with your spouse, you should create a divorce settlement agreement—one of the vital uncontested divorce papers. Besides the property division arrangement, a divorce settlement agreement should outline the following items:
Do you want to reduce the cost of your divorce even further? If you hire a lawyer to create your divorce settlement agreement, you’ll likely have to pay an arm and a leg for the service. Many people use online divorce templates, but that could be a risky option since templates are generic and typically don’t comply with state-specific divorce laws.
Luckily, we have a reliable and affordable solution! Register for DoNotPay, and we will create a fully personalized and law-compliant divorce settlement agreement in under five minutes.
DoNotPay offers you a product that can help you create your divorce settlement agreement with zero effort. It will create a document tailored to your needs at an affordable price!
Sign up for DoNotPay and follow the steps below to create your divorce settlement agreement in a jiffy:
- Type in Divorce Settlement Agreement in our search box
- Enter all the information regarding you, your spouse, the date of your wedding, and similar
- Tell us how you want to divide your assets
- Indicate whether you want us to find you an online notary so that you can get your document notarized
Once you complete the steps, DoNotPay will generate your document immediately. If you opt for notarization, you can sign the document in front of a notary in a virtual environment!
If you want to know more about the divorce process, check out our informative articles on how to:
- Reach an out-of-court divorce settlement
- Collect and file the necessary divorce papers
- Take the required steps towards getting a divorce
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