After a divorce, both parties are asked to go through their debts and assets to determine how to divide them. The goal is to divide everything as equally as possible. For instance, if one party gets the house, that same party may also be responsible for taking care of credit card debt that the couple accumulated. In the event that the couple has multiple bank accounts, the assets inside of the accounts should be separated equally.
For example, one person may be entitled to take the larger bank account while the other party gets the smaller account and the more valuable car. Another issue that needs to be considered when dividing property is whether or not property is community or separate property. If property is considered to be separate property, it is generally not eligible to be divided during a divorce settlement.
To help determine which assets are eligible for division, each person should make a list of everything that the couple owns. The two lists can then be compared to see how close each person has come. After the lists are compared, it may be possible to come to a compromise as to how to split assets that are in dispute. When splitting debt, it is important to know that the creditor can still go after both parties if they are listed on a joint debt.
Those who are having a property division dispute or need help understanding property division laws may wish to consult an attorney. An attorney may be able to help a couple determine a relatively equitable split that adheres to state law. Legal counsel may also be able to help divide debt in a manner that will preserve each person’s credit standing after the divorce is finalized.