Dividing Assets in Preparation For Divorce

 

                                   By:  Edward LaVance Adams l0/3/09

 

 

Objective:  The objective of this article is to outline some strategies for asset division before divorce.

 

Summary:  Too often people engage in a tug-of-war over assets rather than dividing them mutually and fairly.  This article seeks to describe other methods of settling the division of property amicably.

 

 

Sometimes there is so much anger accompanying divorce that couples try to deprive each other of assets and in the process, hurt themselves.  This can be avoided if the couple could keep the end in sight which would be to part company as amicably as possible.

Since anger from the marriage infiltrates the divorce and that anger continues long after the divorce, it is in everyone's best interests-especially if there are children--to part on civil terms.

 

People can often be heard to say, "all is fair in love and war" and "who has the most toys wins".  This has no place in the real world.  When couples work together in the marriage, they accumulate assets.  Once the divorce looms in the foreground, the couple face the daunting task of deciding how their assets accumulated in the marriage should be divided.

 

We would hope that, at one time in the marriage, there was a team effort.  If so, the couple needs to go back to that place to be a  team one more time as they barter about their assets. That makes it more of a marble trading effect. "You take this and I will take that"--

 

It is possible that the only way to reach a satisfactory solution is to sell the assets and divide the proceeds.  This, however, usually only benefits a third party and causes financial losses to the couple.  It is more practical, as in marble trading, to establish which assets are more important to each.  For example, there is a boat and a golf membership.  The value on each is comparable.  One partner loves water skiing and fishing and the other loves golf.  Instead of selling everything, the couple agrees to divide the assets--keeping the one that is favored by each.  This is preferable to liquidating everything and repurchasing what was sold with the proceeds once the division of money has been made.  the repurchase is often at a higher price.

 

Sometimes, both parties want the same assets.  Then a sale may be necessary as everyone starts over.

 

It is possible in some cases to "co-exist" with the assets.  Each shares the cabin or the boat.  This is difficult as divorce generally does not happen between friends and non-friends generally do not share very well.

 

If everyone wants the same assets, the bartering begins again.  One partner may buy the other out of one asset and sell his share on the next to the other partner.

 

Some assets which are marital property are considered personal to one of the partners. When "his" and "hers" cars exist, everyone keeps their own car with understandings as part of the decree as to who pays the upkeep, payments, etc.

 

There are other items purchased during the marriage that are more likely to be considered "gifts" and are owned by the recipient.  Jewelry falls into this category.  Wedding gifts are another. The jewelry belongs to the receiver and does not go into the pool of assets.  It is generally thought that wedding gifts belong to the wife.

 

The main goal in the division of any marital property is to distribute the assets so that each party is satisfied that they received their share.By working together, this goal is more likely to be accomplished.