How To Divide Assets And Debts In Divorce
While there are a lot of issues a couple must settle and agree upon in divorce, one of the hardest, yet most important, issues is dividing the assets and debts they have. To do this, you will need to begin with a clear list of all your assets and all your debts. Next, you will need to determine the best way to split these.
The importance of a complete list
One of the most important things you can do at this time is make sure you have a complete list of all the assets you have and all the debts you owe. When it comes to assets, you may want to begin with the most valuable ones first, and you should list the approximate values of each. This may mean starting with your house. Next, you should list your cars and other large assets. You can then list all your bank accounts and balances. Finally, list the main personal belongings you own, along with the values of these items.
For your debts, you should simply list each debt with the balance. If you are not sure what debts you have, look up both of your credit reports, as this will show most of your debts with the balances owed.
Choose what you want
Next, you will need to determine the best way to split these things. If you begin with assets, you should determine who will get the house, as this is normally the biggest and most challenging asset to divide. If there is equity in the house, the person keeping the house might get fewer assets due to the equity the house has. From there, you can try to divide the assets evenly between you and your spouse.
With debts, you should try to also divide them evenly, and a good place to start is by dividing them by whoever's name is on the debt. If you have credit cards that are in just one of your names, you can assign that debt to the person whose name is on it.
The goal of this process is to give each spouse the same value of assets and the same value of debts. While it can be hard to do this exactly even, your divorce lawyers will be able to assist and offer tips to help you do this. If you have not talked to a lawyer yet, this should be something that you do soon.