Divorce terminates the legal partnership between two people, but it is more than just that. It also requires the couple to divide whatever property has been acquired after the marriage up until the time of the divorce. The property they owned before the marriage remains with each individual. It is important to determine what happens with shared assets, hidden assets and how property should be divided and what happens to policies, insurance and the family home.
Marital property can be divided in two ways: equitable distribution and community property. Community property means the property is divided equally between the couple, whereas equitable distribution divides the property according to the earnings of the spouses. Whoever earns a higher amount gets a larger share.
Similarly, debts also need to be divided between the spouses. Debts can be divided by investigating the reason for the debt. For instance, if the debt is because of one partner gambling, then the debt will be paid by the gambler. You can also settle the property issues outside of court with mutual consent. This would be simpler and less expensive.
The marriage property will be divided according to the state laws so it is best to look into a prenuptial agreement before the marriage, especially when income expectations are high. If you are getting divorced, you should speak with an experienced and qualified divorce attorney in order to weigh all the available options regarding marital property. This includes discussions regarding marital property, spousal support and child custody issues.