Assets are a major part of divorce because it is the area where a majority of the conflict occurs. There are non-marital assets and there are those that were acquired during the marriage. Debt also falls into this category because it is possible that the debt incurred during the marriage will be split between two parties.
Non-Marital Assets Vs Marital Assets
Non-marital assets are those assets that were acquired before the marriage. Inheritances and gifts can also be considered non-marital. Marital assets include property or money that was acquired during the marriage. Because of this, it is possible that the assets will be split between the parties. However, debt is considered in this as well and, if a judge will be deciding how assets and debt is split, the judge will consider the financial standing of both parties and split it accordingly. For instance, one spouse, due to earning more, may be required to carry more of the debt, while the spouse that earns less will acquire more of the assets.
However, it is possible for both parties to mediate and come to a decision regarding who receives what. For instance, there are two family cars. One spouse can take the car they primarily drive, while the other takes the one they drive. If there are children involved, it is common for the non-custodial parent to opt for the custodial parent to live in the home with the children.
Closely Held Businesses
If you and your spouse own a business together, you will need to immediately address this with your Andover divorce lawyer. It is possible that the division of marital assets can affect your business. When that’s the case, there are some that use a buy-sell agreement where one spouse buys out the other in order to have sole control over the business. However, there are those that agree to continue running the business as it is, so they maintain the amount of interest they have in the business. In the meantime, the business valuation is counted with your assets and plays an important role in how assets are divided.
The failure to disclose assets to your Andover family law attorney can spell big trouble. In Minnesota, it is automatically assumed that spouses are financial partners while married and this partnership means that they are entitled to share income and assets that were created by that partnership. It is the duty of each party to fully disclose finances. Those items include real estate, bank accounts, pension and retirement accounts, and the ownership of a business. Failure to disclose all of the details can result in very serious legal consequences that can have adverse effects for years.
Contact An Andover Family Law Attorney
Asset division is a very difficult part of divorce, so you do need an attorney by your side helping you during the negotiation process. If an agreement cannot be reached in mediation, a judge will decide who receives what assets and who will be responsible for certain debts. In the end, the result is equal, although the actual act of division may not seem like it. To find out how we can help you during this process, call us at (952) 898-6834 or fill out the contact form to schedule your free consultation.