Division of Assets and Debts

Resolving issues pertaining to property and debt in divorce can be a complex and contentious process. When parties to a divorce are unable to come to an agreement as to their property, it must be classified, valued and allocated.

In terms of classification, property must be declared as either marital or non-marital. Property acquired during marriage is generally presumed to be marital property. However, property acquired during the marriage may be deemed non-marital if it was received through an inheritance, gift, or in exchange for non-marital property.

Once property is classified, it must be valued. While many assets are easily valued, the valuation of some assets is more complicated, such as closely held business interests and real estate. In these more complex valuation issues, it is often necessary to retain an appraiser and/or business valuation expert to opine regarding the value of the asset. Collins Family Law attorneys have the experience to help you determine whether an expert should be consulted or retained.

Once property is valued, it must be allocated to one or both of the parties. If a spouse has significantly more non-marital assets than the other spouse, this can impact the division of marital property.

The court will also classify debt as marital or non-marital and determine which party will be responsible for its payment.
In dividing assets and debts, the Court will consider a spouse’s claim for contribution to the acquisition of assets or debts and possible reimbursement for same.

Collins Family Law attorneys have extensive experience in handling even the most complex and challenging financial issues, including property and debt classification, tracing marital and non-marital property, business valuations, and tax consequences related to the division of assets.