How does division of assets work in a divorce? Asset division is handled by considering what is equitable, what property each party has, factors within the marriage and divorce, valuable assets and debts, and either reaching a mutual agreement or having a judge make the final decisions.
Working with a West Hartford divorce lawyer can help you navigate the process.
Division of Assets in Connecticut Is Based on Equitable Distribution
Oftentimes, when people think of splitting assets in divorce, they assume it’s 50/50. This is not always the case when it comes to how division of assets works in divorce. In Connecticut, property is divided equitably, not just equally. The courts evaluate the specific facts of the marriage to determine what is fair.
A judge may consider the individual circumstances of each spouse, such as health, education, time out of the workforce, or income. They also often consider both financial and non-financial contributions during the marriage. If one spouse stayed home as a homemaker or to raise children, that may be taken into account.
Additionally, one spouse may have set their career aside to allow the other to focus on theirs, affecting them in the long term after the divorce. If you are experiencing a divorce, a West Hartford family lawyer may be able to help you fight for the assets you are entitled to.
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Nearly All Property May Be Considered During a Connecticut Divorce
In Connecticut, there are very few assets that are protected during a divorce. Almost any property one spouse has could be considered during divorce when determining how to split assets. This can include:
- Property acquired before marriage
- Property acquired during marriage
- Inherited assets
- Gifts received by one spouse
- Business interests
- Real estate
- Investment accounts
- Retirement accounts
Per Connecticut General Statutes § 46b-81, judges have a large amount of discretion when determining what is fair and how the division of assets is split in a divorce.
Several Factors Can Influence How Assets Are Divided
Every case is individual, and there is rarely a one-size-fits-all answer on how division of assets works in a divorce. The courts consider many factors when dividing assets, including:
- Length of the marriage
- Causes of the divorce
- Age of each spouse
- Health of each spouse
- Occupation and earning capacity
- Income sources
- Employability
- Contributions to the acquisition of assets
- Future financial opportunities
The courts tend to look at the whole picture of the marriage, divorce, and each individual partner when determining how assets should be divided. It is important to note that this is separate from child support and spousal support cases.
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The Family Home Is Often One of the Most Significant Assets to Divide
Determining who gets the family home is frequently a point of contention in many asset division cases. As with all aspects of these cases, judges make the final decision on what happens to the home.
Some spouses can reach an amicable agreement on their own. Still, often a judge will determine who gets the home based on several factors, including whether children are involved, affordability, and necessity.
There are also scenarios in which one spouse may buy out the other, or in which there is an agreement to sell the home and split the proceeds equitably. Since this is often one of the most valuable assets a person may own, it is essential that all bases are covered regarding the house when determining how division of assets works in a divorce.
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Retirement Accounts and Businesses Are Frequently Subject to Division
During a marriage, assets may be accrued by one party, but both parties may share in entitlements during a divorce. This can include retirement accounts, businesses, and the stocks that come along with them.
Often, employees are offered employer-matched retirement plans, such as 401(k)s, or they have other retirement accounts in their own names. These are often subject to division during a divorce, regardless of whether or not the spouse is listed on the account.
Additionally, one spouse may have built a business, and during a divorce, the other spouse may be entitled to equity, stocks, or other investments within the company. One potential solution is for one spouse to buy out the other, but if a mutual decision can’t be made, a judge can step in and determine how things should be split.
Debts Are Also Part of the Property Division Process
Not all equitable splits include receiving assets; some involve splitting debt. It is not uncommon during a divorce for one spouse to have to take on debt in addition to receiving assets. This can include:
- Mortgages
- Credit card balances
- Auto loans
- Personal loans
- Business debts
- Tax obligations
Courts often evaluate who is responsible for the debt when determining how assets are divided during divorce, and take that information into account when making their decision about who is entitled to what.
Many Property Division Disputes Are Resolved Through Settlement
Standing before a judge is not the only way asset division works in divorce. It is not uncommon for divorcing couples to reach an agreement without going to trial; in fact, most prefer it. This can be achieved either by handling negotiations directly with the guidance of an attorney or by going through mediation.
By avoiding trial, solutions may be much more customizable. Each spouse may value different items, and by negotiating together, a reasonable agreement can be reached that both parties find acceptable.
Many couples attempt this without the assistance of a West Hartford mediation lawyer, and while this is within your rights, it makes it much more difficult down the road if issues arise. By working with a lawyer, a legally binding contract can be written that ensures both parties are legally compelled to abide by the plan.
An Experienced Divorce Lawyer Can Help You Navigate Asset Division
Divorce is not an easy decision, nor is it an easy process, but you do not have to navigate it alone. At Rich Rochlin Family Law, we understand the challenges you are facing and are here to help.
Our dedicated attorneys are here to fight on your behalf to help you secure the assets that you are entitled to. Contact us today to schedule your consultation to get started on your next steps.
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