Going through a divorce is devastating and emotionally draining. If you are a celebrity who is worth millions of dollars, it can be difficult to navigate a split. Here are some tips that you can use to divide property in a divorce.
Use a Prenup for Avoiding Property Division Requirements
It is not that uncommon for the couples with high net worth to execute a prenuptial agreement prior to getting married. This is because a prenup will allow the couples to sidestep the divorce laws in the state. Thus, couples will be able to avoid property division requirements says family lawyer Richmond Hill.
Each spouse in the divorce can have one-half of the community property. However, it might be difficult to identify and value your asset. Moreover, it might be complicated to decide who gets what. With the prenuptial agreement, the spouses will be able to hash out the property division detail before time and skip worrying about the 50/50 split.
Family lawyer Richmond Hill states that you need to keep in mind that the court still has to sign off on how the property is going to be divided. The judge will search for the indicators that contract had been signed under duress or if it will benefit one spouse over the other unfairly. In majority of the cases, unless there is proper evidence of misconduct, terms of prenup are going to be upheld.
How will a Couple Divide a Property?
Family lawyer Richmond Hill in order to ensure that each of the spouses gets half of the property, they need to,
- Identify the assets which include income, royalties, retirement benefits, stock, real estate, vehicles, and other valuables.
- Place a value on each of the asset.
Once the assets have been valued and identified, there are only few ways to start with the allocation and the division process.
Split and Liquidate Profits: Couples might choose to sell their assets and then divide the assets in an equal manner. This might prove to be a challenging task for some assets which can be easily sold.
Allocate Items of Same Value: In case the spouses are not interested on selling off the assets, they might choose to go through a detailed procedure. In case one spouse has to retain sole ownership and rights to the retirement valued at $100,000, the other spouse is entitled to the property which is also valued at $100,000. Family lawyer Richmond Hill, the other spouse might choose multiple items when it is valued together equals $100,000. The process will go on till each of them has assumed ownership of the equal share of the marital property.
Assume Debts in Lieu of the Assets: Spouses will not have to worry about their assets. Each side are going to be liable for the one-half of the debts that they hold. A spouse can agree to take a considerable share of the couple’s debt in exchange for a certain portion of the marital property. Family lawyer Richmond Hill says that one spouse might really want the family home. If the home encumbered by the mortgage loan, the spouse might offer to assume the debt. In case the spouse agrees, they are going to have to give up less in exchange for the house.