One of the most contentious things that a person who is getting a divorce has to deal with is the property division process. As easy as it is to fight over who is going to get what, it is just as easy to keep an open mind about the process once you take your emotions out of the affair. There are some important things that you have to consider when you are going through this process because they can all affect the final outcome.
Not all property is created equal
When you start to think about the types of property that you have, it is important that you divide it into the appropriate categories. While most property is going to be marital property, some property might be separate property. Texas is a community property state, so anything that you and your spouse acquired from the date of the marriage through the date of the separation is considered marital property. There are some exceptions, which include inheritances that are meant for only one spouse or gifts that are given specifically to one spouse.
There are some assets that must go through the valuation process. Businesses, investment accounts, and retirement accounts are some of the assets that might have to go through this. Some real property might also need to have the value determined. This can often be complicated, but it is possible to call in financial experts who can handle this.
Property division includes debts
The property division process involves more than just divvying up assets. You also have to think about debts that you have. These debts play an important role in the process because you don’t want to be saddled with all the debt and not get any of the assets.
Debts also have another consideration in the divorce process. When the court divides debts, the order is a civil order. The creditors who hold the debts aren’t required to abide by the debt division in the divorce settlement since the creditors aren’t a party in the divorce. Because of this, you have to take steps to protect your credit.
In order to protect your credit, you will have to seek the help of your creditors. Find out if they can close out joint accounts and open up a new account in only the person’s name who is responsible for the account. You and your ex might have to work together to get this done, but the little bit of headache now is likely worth the benefit to your credit.
The goal is equitable, not equal
In Texas, the goal of property division is to come up with an equitable division. This means that it won’t always be an equal division. There are several things that are considered when trying to determine what is equitable. These include the role of each spouse in the marriage, which can include who was earning money. You should be prepared to compromise during the division process based on the points that are applicable to your case.