What Happens to a Shared Property When You’re Getting Divorced?

One of the main reasons that divorce can be such an acrimonious and messy process is that couples often have a lot of things to divide between themselves. In cases where property is shared, then it can be difficult to decide who gets to keep it. So, how is this determination made?

Understanding Shared Property

First, let’s define what we mean when we use the term ‘shared property’. This might include the home that you’ve been living in or any real estate that you’ve jointly invested in. In fact, it can cover any assets that you’ve purchased jointly.

During marriage breakdown, property owned by either of you can be used to determine the financial settlement due – and this includes not only property that you’ve purchased independently but also property that you owned before you got married.

Legal Implications

The way that divorce works will vary depending on where in the world you are. There are two competing principles in play here. The first is ‘community property’, which holds that everything should be split evenly. The second is ‘equitable distribution’, which holds that everything should be split fairly. So, if one party has squandered assets, they might be made to pay more.

Property Division Methods

So, how do you split an indivisible asset? There are a number of methods. You might directly negotiate a split with your partner. If you can both agree on who gets what, then you’ll avoid any additional process. In some cases, you might need a third-party mediator to oversee this conversation. If this doesn’t work, then you’ll go to court. When deciding how things are split, the court will weigh various factors. How much is the asset worth? Who contributed more to its purchase? Who will need it most in the future?

Pre-Divorce Planning

Divorce is, by its nature, something that takes us by surprise. Nevertheless, it’s worth doing a little bit of advance planning before you enter into the process. Think about which assets you own and how you’d like them to be split. If you have documents that demonstrate ownership of certain assets, then you might have an easier time securing them.

Marital Agreements

Some couples will set out how their assets will be divided before the marriage breaks down. This is called a prenuptial agreement. They’re helpful when one party has a much larger estate than the other. Postnuptial agreements do the same thing – except they’re made after the marriage. A good family law solicitor will help you to devise these contracts.

Tips for an Amicable Property Division

If you want to make everything as amicable as possible and avoid costly and stressful disputes, then it pays to anticipate potential points of friction and to set out everything in writing ahead of time. This way, there’s nothing to argue about: the way forward is all there in writing.

This is a collaborative post.