Divorce is a complex and sensitive process that not only terminates a marriage but also equitably distributes properties and debts. It is seen that after divorce, family income drops by 40%-45%.
Do you know that 53.4% of people divorced in 2022 owned their own homes? But how? It involved proper division of assets. The process becomes cumbersome and complex without legal advice, which is why consulting an experienced asset division lawyer in Boca Raton is crucial, especially when there are complications.
This blog will discuss how divorce lawyers help in property and debt distribution cases to give both the husbands and the wives an equal share in the same.
Understanding Asset and Liability Division
In the case of divorce, the division of wealth and debts is one of the most critical procedures. Current assets are money, stocks, bonds, investments, equipment, and other tangible and intangible properties owned for less than a year, while fixed assets include buildings, plants, machinery, equipment, and other properties held for more than a year.
Current liabilities include accounts payable and accrued expenses, loans, mortgages, and notes payable, while noncurrent liabilities consist of bonds, mortgages, and notes payable due in more than a year.
The use of equitable distribution in Boca Raton, Florida, implies that the property and debts are divided reasonably, but it doesn’t necessarily mean that the split is equal. This is where a lawyer specializing in divorce property settlement is helpful in handling the case.
The Role of Divorce Lawyers in the Asset and Liability Division
Divorce lawyers in Boca Raton make their clients aware of the Florida laws governing the distribution of marital assets. They synthesize the peculiarities of each case and contribute to the development of a plan that would guarantee a proper distribution of gains and losses.
Assessing Marital and Non-Marital Assets
The initial stage in the division process is determining which of the assets and liabilities are marital and which are non-marital. Marital assets include those that are acquired during the marriage, whereas non-marital assets include those that a spouse owned before the marriage or inherited or received as a gift. Counsel tries to detect, sort, and appraise such assets so that only marital property is considered for distribution.
The differentiation between marital and non-marital property can often pose a problem, especially in cases where money or other assets were combined during the marriage. A skilled marital asset division lawyer will be able to decipher these issues and provide a clear understanding of what is divisible.
Valuing Assets and Liabilities
The next step after identifying the assets and liabilities is to ascertain the value of each of the identified items. This is an essential phase because the division is premised on the valuation of the shares, and it has to be correct. Divorce lawyers also involve other professionals, such as valuators, accountants, or appraisers, to place value on the properties, including houses, businesses, and investment shares.
Real Estate Valuation
In most cases, the property is one of the most significant investments that are made by couples. No matter if it is the marital home or other properties that the couple owns, it is essential to assess them properly. Experts in property laws will consult with real estate appraisers to come up with a fair market price for the property and the division of the property.
Business Valuation
When one or both of the spouses own a business, it may be challenging to determine the value of the business. A lawyer may, therefore, call on a forensic accountant or a business valuer to make sure that the value ascribed to the business is appropriate. This divide is equitable and reasonable to both parties, and there is no chance that one may be given a raw deal.
Retirement Accounts and Investments
Alimony and division of retirement accounts and investments can pose serious problems and issues regarding taxes. The lawyers help in the computation of the current value of the retirement funds and contribute to the effort to meet the requirements of the federal laws.
Negotiating the Division of Assets and Liabilities
Bargaining is one of the most critical aspects of the division of assets and debts in a marriage dissolution process. An efficient equitable distribution lawyer in Boca Raton will ensure that they plea for a settlement that will favor the client’s side. It is always the aim to steer clear from trial and instead come to a settlement by mediation or collaboration with the law.
Mediation and Collaborative Law
Mediation is typically employed concerning property and debt distribution. In mediation, the two parties sit down with an independent and impartial person who helps them decide how the property is to be divided. In mediation, divorce lawyers are beneficial because they offer counsel to their clients and assist in explaining to them the consequences of various agreements, in addition to advocating for their clients.
In collaborative law, the two parties accept the fact that they will be solving their problem without the help of the court. In this process, lawyers participate as negotiators and provide legal counsel that leads to an agreed solution.
Addressing Liabilities in Divorce
Marital debts and obligations are as accurate as marital property and, therefore, should be divided appropriately. A liability division attorney in Boca Raton must have enough experience to guarantee that debts are divided equally. This can prove to be more crucial when handling significant expenses such as home loans, credit card balances, and student loans.
Mortgage and Loan Division
If the couple has a house that is still being paid through a mortgage, it may be a challenging decision to determine who will be in charge of paying the balance after the divorce. Some of the solutions that lawyers assist in arriving at include selling the property and sharing the proceeds or redeeming the mortgage so that one spouse takes full responsibility for the home, including payment of the mortgage.
Credit Card and Personal Debts
Credit card debts are also an issue in divorce cases because debts incurred in one’s name for the benefit of the couple are considered the sole responsibility of the holder. Attorneys help in the process of identifying which debts should be shared as they are incurred during marriage and which debts are incurred by one spouse only.
Tax Liabilities
One crucial aspect that is commonly not considered during a divorce is taxes, and yet, they play a vital role in the post-divorce period. Divorce lawyers consult with tax advisors to consider the consequences of taxes on the distribution of marital properties, for example, capital gains taxes on the sale of real estate or penalties for withdrawing funds from retirement accounts.
Equitable Distribution in Boca Raton
Specifically, the courts of Boca Raton, Florida, apply the rule of equitable distribution for the distribution of assets and debts. This implies that the division is more equitable and not exactly 50-50. These include the duration of the marriage, each spouse’s contribution, whether in terms of money or efforts and the financial position of each spouse after the dissolution of the marriage.
Factors That Affect Equitable Distribution
An equitable distribution lawyer in Boca Raton will consider factors such as:
- The number of years that the couple has been married
- Major roles of each spouse in the marriage, for example, for household work and child care.
- The economic status of each of the spouses
- The need to maintain specific assets, such as the marital home
- Engagement in wasteful conduct or squandering of marital property by either spouse
By taking these aspects into account, lawyers can ensure that the spouses agree to a fair division of property that will not leave any of them financially unstable in the future.
Conclusion
Divorce is generally a difficult and emotionally charged experience, especially as far as the distribution of property and debts is concerned. When it comes to marital asset division, one must hire an experienced asset division lawyer in Boca Raton to have a proper and fair division made.
These lawyers are pivotal in establishing the value of the assets and arguing for or against the settlement of disputes, as well as in the allocation of liabilities. Whether the matter concerns real estate, business affairs, or debt, an experienced lawyer will help their clients navigate the legal environment and seek justice.
