Protecting Your Family And Future

Even assets spouses don’t want can influence property division

On Behalf of | Jan 21, 2025 | Divorce |

When people divorce, they have to strategically separate their finances and property from one another. Some people have prenuptial agreements in place already, which means that there is already an effective plan for the division of their property. Most couples do not have written agreements with one another and must negotiate property division matters as they begin preparing for divorce.

It is quite common for people to focus on the most valuable assets during property division negotiations. They worry about business holdings, real estate and retirement savings. People often gloss over personal property and become very dismissive about assets that theoretically belong to one spouse or the other. Wardrobes, collections and other personal property may not seem worth discussing during divorce proceedings.

After all, a husband has no need for his wife’s collection of jewelry or handbags, and his wife likely has no desire to own his designer suits or prestige brand wristwatches. Even in scenarios where one spouse has no desire to acquire the personal property of the other spouse, taking the time to address those assets can be worthwhile.

Equitable division requires a holistic approach

The law of the land is equitable property distribution. The final outcome should be fair and appropriate given the circumstances of the spouses. What may be equitable in one case might seem patently unfair in another. Factors ranging from the health of the spouses to their earning potential and their separate property can influence the most appropriate way to divide their marital property.

Any resources acquired during the marriage or with marital income are technically part of the marital estate. The marital estate includes items purchased by one spouse with their income for personal use. If one spouse spent $3,000 on a designer handbag during the marriage, they spent marital funds acquiring that asset.

It is therefore worthwhile to determine what those assets are worth and factor their value into the overall property division process. The more valuable the personal property that spouses accumulated is, the greater the impact their personal resources may have on the final outcome of the divorce. Even assets that an individual has no desire to own personally could strengthen their position during property division negotiations.

Conducting a thorough financial review and establishing a comprehensive inventory of assets may require that people consider personal holdings in addition to higher-ticket shared resources. Spouses who remain focused on the big picture during divorce negotiations can often secure the best terms possible when dividing their property.

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