Division of Assets
The law states that marriage is a partnership.
With this being said, the division of assets must become an understandable concept when in the process of a divorce and separation.
Partnership means equalization.
Equalization is the legal term for a monetary payment that one spouse pays to the other to make life equal.
How does it all work?
In order to “make life equal”, both party’s net worth’s are looked at from the date of the marriage to the date of the separation.
The law states that changes in net worth from each party dictates the amount owed to one another.
For example: Sally and Jonas got married in 2010. Since then, Jonas has increased his net worth by $10,000. Sally has increased her net worth by 30,000. The difference between them is $20,000. The equalization payment is half of this – $10,000 – which would bring Jonas up to $20,000 and Sally down to $20,000.
Deductions are the items owned at the date of the marriage. Therefore, if you come into the marriage worth something, it is deducted from what you own at separation.
Exclusions are things that are included at the date of separation but get factored out. The law determines what is excluded and not shared with the other spouse (i.e. an inheritance).
Stephen Durbin and Associates is here to help
The lawyers and law clerks at Stephen Durbin and Associates take the time and care to deliver customized representation to every client we assist.
We do everything we can to protect your concerns with our legal expertise, especially in sensitive times such as within divorce and separation.