Liquidating your marrital assessts
Many non-community property jurisdictions also treat assets and property acquired outside of the marriage as separate, and they tend not to divide separate property if the parties are on relatively equal financial footing at the time of divorce.
The specific results may vary from jurisdiction to jurisdiction.
If the down payment came from funds that are separate property, then a court might choose to ignore the down payment and award the property and associated liabilities to the purchasing spouse.
Generally a court will award you and your spouse your individual personal property, which includes your personal items such as clothes, grooming supplies, accessories, and jewelry without significant value.
Each state has a different set of rules for how assets and property are divided in a divorce, but generally, states can be categorized into one of two groups when it comes to how they divide property: Community property states require a 50-50 split of all “marital assets,” which includes any and all assets acquired by either spouse during the marriage.
Money and assets you had before the marriage aren't included in a community property split unless you “comingled” or mixed them with marital assets.
This normally means that the non-purchasing party would receive a larger share of the remaining marital assets to offset the value of the purchased property.
If you need to make a significant purchase,you should discuss it with your family attorney or obtain the agreement of your spouse before proceeding.
If you’re contemplating a divorce, you may be concerned about how your money and property will be divided.
If you have a significant amount of cash or assets, it can be very tempting to try and hide those assets from your spouse, especially if you’re angry at your spouse or if you believe you worked for the assets and are entitled to keep them all.
But a court's treatment of such newly purchased property at the time it divides assets depends on a number of factors, among them the value of the purchase;the financing for the purchase, if any; the source of funds to make the purchase; and the jurisdiction where the divorce occurs.
Your state's divorce laws may have a mechanism in place for you to request a financial restraining order that prevents you and your spouse from dissipating assets during a divorce.
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In situations where you or your spouse made a down payment toward the purchase of property and financed the balance, a court may consider the down payment in a property distribution at divorce.