A property division agreement is entered into by married couples who are getting a divorce in order to divide up their assets, provide for payment of community debts, resolve child support, child custody, child visitation, spousal support, parental rights and other divorce issues. The court would prefer that the couples agree on these issues without involving the court so the court can free up their calendar to hear other cases. In an uncontested divorce, the parties decide the property division issues before they attend their final court hearing, where the judge issues a final decree dissolving the marriage. In a contested divorce, if the parties cannot decide property division issues, the court will step in and make a decision on their behalf.
What Factors Influence the Court?
The Court will take into consideration the following assets of the parties when approving a property division agreement:
- Real estate
- Personal property
- Retirement, pension and profit sharing accounts
- Employee stock options
- Stocks and bonds
- Checking and savings accounts
- Business accounts and assets
- Salaries, bonuses and commissions
If you live in a community property state, the court will divide the assets equally. If you reside in an equitable property state, the court will award the property division in an equitable and fair manner. Separate property is excluded from your property division agreement.
Separate property includes the following:
- Property owned prior to the marriage
- Property acquired during marriage either by inheritance or gift
- Rents and profits from separate real property
- Earnings of each party after they legally separate
- Insurance settlements
- Disability insurance
Marital Settlement Issues
The marital property division agreement generally addresses the following issues:
- Family home, other real and personal property
- Community debts, credit cards and other installment accounts
- Parties’ living expenses
- Child custody, child and spousal support, child visitation and rights of parents
- Educational expenses, college tuition and living expenses
- Health insurance and dental insurance
- Asset division such as bank accounts, retirement, pension and profit sharing account
- Life insurance policies and annuities
- Stocks, stock options and bonds
- Income taxes
Property settlement and divorce issues are quite emotional for the parties. It is advisable to hire a family law attorney to represent you in the negotiations and divorce proceedings.
Final Decree
The court will review your property settlement agreement. It will become part of your divorce degree. Once the judge signs the degree, you are considered divorced.
Hire a Family Law Attorney
Most people do not understand the divorce and property settlement issues and hire a family law attorney to represent them in a divorce matter. The attorney can advise you of your legal rights and obligations, and represent you in court.
