Assets, Inheritance and Divorce—Deciding on a Viable Settlement

Dividing assets equally or at least fairly in a divorce can be a pretty difficult task, especially if the separation in question is not an amicable one. Throw in an inheritance or substantial property into the mix, and the process can take a hostile turn very quickly!

There is some argument that something like an inheritance—if it is entitled to an offspring—can be up for grabs if both parties decide to separate. However, others state that an inheritance, which is passed down from a loved one or family to the person in question, should not be considered a dividable asset at all.

In fact, considering all financial assets involved, there’s a list of rules for each property that can be divided in a divorce. For example:

Community Property

This property includes all earnings and all debt that was acquired during the marriage. Unless a creditor specifies the separation of property for payment, the debt in addition to all earnings during the marriage is considered community property debts.

Property Acquired by Each Spouse

This includes inheritances and gifts that are acquired by each spouse, personal injury awards, any pension they may receive as well as any physical property they may have purchased with separate funds.

In addition, any business a spouse may have owned during the time of their marriage is considered theirs alone, unless a portion of it increases in value, or if both spouses worked on it. In this case, the other party can ask for their share of the business, in ownership or in the form of income.

Property Purchased through a Combination of Community and Separate Funds

Such property can only be considered as separate property if the party involved is able to show a separate source of funds. If mixed with community property, this type of property (for example, a house bought on mortgage) also becomes community property.

Choosing the Primary for a Marital Home

In case children are involved, the parent who provides primary care and spends the most time with the children gets to stay in the marital house. However, if there are no children and the marital home is a separate property that only one spouse owns, then they have every legal right to ask the other person to leave.

But, if both spouses have joint ownership of the property, they can either come to a decision on their own, i.e., sell the property and get their share. Or they can leave this decision to the court.

How are Financial Assets and Property Divided?

Truth be told, there’s no easy plan to follow when it comes to dividing financial assets and the like. If couples cannot come to a decision, they can either leave it to the judge or ask their divorce solicitor to mediate on their behalf, which is where we come into the picture!

Wembley Solicitors is a leading firm in London that offers legal assistance on all matters concerning divorce, judicial separations, financial settlements and more. For further information on how you can manage your finances during this trying time, contact us today at 020 3417 3700.