Divorce - Property Division and Mediation

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Divorce - Property Division and Mediation
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Table of Contents

• Three Great Ways to Split the House after a
  Divorce.
• Four Tips on How to Prepare For Divorce
  Mediation.
• Three Wrong Notions Most People Believe About
  Property Division in A Divorce.

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Three Great Ways to Split the House after a
Divorce

• In the event of divorce, one of the major issues
  that arise is splitting the most significant
  asset between you and your ex own fairly.
• No doubt, tax implications of a home sale and
  lifestyle plans are part of the decision-making
  processes in a divorce there is no way you can
  dodge the tax and financial consequences.
• But, what if I told you there are stress-free
  ways to splitting a house after a divorce occurs.
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• Heres the catch
• We have listed three effective ways that work for
  most people. Keep reading. You would find out.
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•  1. Purchase your Ex-Spouses half of the House
• The only way a buyout works is if you qualify for
  a new mortgage, or you have the money at hand.
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• In reality, the amount you pay your ex-spouse
  does not have to be the exact amount of half
  value of your home. What happens is that you will
  take the larger portion of the savings while your
  spouse gets less than half the home price.
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• To find out the value of your home, it is best to
  contact a real estate professional to get an
  accurate and recent price opinion. You can also
  pay an appraiser to value your home, but do not
  rely on an online estimate to evaluate your home.
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• If you opt for this option, you have to ensure
  you have a written proof that your ex-spouse paid
  off existing home-equity lines or mortgage. The
  reason for the document is to prove that you are
  no longer responsible for the debt.
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• The good news
• There is a possibility that you will not owe any
  capital gain taxes when you sell half of your
  house as part of a divorce.
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• 2. Retain the House and Take Turns Living There
• There are cases where a family chooses to
  maintain the same house after the divorce. The
  children would reside in the original home while
  the parents take turns to live with the children.
• In such cases, the parents agree to deduct and
  share the expenses such as property taxes and
  mortgage interest between each other.
• It is important to note that you can only deduct
  mortgage interest if you are obligated to pay
  from a mortgage or you own the home.
• Whats more?
• Keeping the house and taking turns residing
  there give the impression that you and your
  ex-spouse are great parents because the kids are
  put first.
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• 3. Keep the House until the Children Move Out,
  Then Sell It
• There are cases where one parent chooses to
  remain in the home with the children while the
  ex-partner moved out of the house after the
  divorce. The moment the children move out, the
  parents sell the home and divide the profit.
• If by any chance, one of the spouses moved out
  and the person has not lived in the house for two
  years in the past five years, there is a
  possibility of owing taxes on the profit gotten
  from selling the home.
• As long as your divorce agreement highlights your
  plans to sell your home, the IRS will regard it
  as meeting the two-out-of-five-year residence
  rule.
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• The Perfect Thing To Do
• It is best to get an experienced property lawyer
  who would help you carry out a comprehensive
  research and get the right allocation you desire.

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Four Tips on How to Prepare For Divorce Mediation

• The decision to divorce is one long and difficult
  road.
• However, if you have made up your mind to go down
  this road, it is best to have a detailed plan
  that would help your transition smooth.
• What if we told you that there is something you
  can do to get the best outcome you desire.
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• What is it anyway?
• Mediation is the answer. The idea behind
  mediation is reaching an agreement that works for
  your life.
• The agreement also involves you not spending your
  childrens college fund on attorney fees.
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• What is more?
• You do not get to spend significant time or
  stress in court. Keep reading. You will get four
  tips on how to prepare for divorce mediation.
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• 1. Accept To Mediate
• First off, in most states, divorce mediation is
  voluntary the best way to table all the issues
  is to agree to mediate.
• For the mediation to be effective, both parties
  need to have a meaningful conversation. However,
  this does not imply that you and your spouse have
  to be buddies.
• Before you agree to mediate, it is necessary to
  go over the advantages and disadvantages that are
  involved before you proceed.
•  Other questions such as logistics, how the fees
  would be split, what dates and times you need to
  commit to the sessions, and more are necessary to
  ask before proceeding with the whole process.
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• 2. Get Organized
• Putting things in order is the next thing after
  you have agreed to mediate. Since it is not the
  mediators job to determine what to do with what
  you have, it is crucial to make a list of all
  your assets and possessions.
• Some of the things you should include are
  retirement accounts, financial products,
  vehicles, all real property, life insurance
  policies, personal properties, etc. In summary,
  do not leave any stone unturnedinclude
  everything you own.
• Other records that could also come in handy
  include pension disbursements, child support
  payment, social security, paystubs, etc. Expenses
  like utilities, food, mortgage payments, credit
  card payments, car loans, and others should be
  included.
• It is crucial to consult with an attorney or
  check your local rules for financial affidavit
  during the dissolution process.
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• 3. Set Your Goals
• The moment you have a comprehensive list, you
  have to decide what you want to do. No doubt, the
  process can be tasking you have to make out time
  to figure out what is most and least important to
  you.
• You will have to create a list on things you will
  love to get, things you can negotiate, and
  essential things you cannot leave behind.
• While you are at it, draft a budget and make a
  projection. The projection gives you an idea of
  your post-divorce budget.

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• 4. Have Your Kids in Mind
• Divorce is usually hard on children it is best
  to communicate what is happening to them
  regardless of their ages after all it affects
  their lives too. Both parents must agree and talk
  to the children together.
• The process will not be easy on your children
  you have to help them through the process by
  providing a loving, positive, and stable
  environment.
• You also have to consider where your kids will
  spend most of their time.

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Three Wrong Notions Most People Believe About
Property Division in A Divorce

• In the US, different states handle the division
  of marital assets and liabilities when a divorce
  occurs.
• Knowing how the property and debts are divided in
  a divorce is one thing it is another thing to
  know which property is meant to be distributed.
• The marital property is usually the one subject
  to division in a divorce, while the non-marital
  or separate property is not.
• In other words, only the property acquired by the
  couple during the marriage is liable for the
  division.
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• It sounds simple
• Well, as simple as it may appear, there are a lot
  of misconceptions when it comes to the property
  sharing process in divorcethat is why we are
  going to be thrashing them out in this article.
• Here, we have listed three common myths about
  property division in a divorce. Hang in there
  you will find out.
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• 1. Equitable Property Means the Property is
  shared Equal
• This myth is quite popular amongst a lot of
  people who get their divorce done in court.
• They always believe that they have a 50/50
  possession of their marital property when the
  judge rules for an equitable distributionwhat
  they do not know is that it means the judge will
  weigh the case based on certain factors called
  the Ruff-Fischer guidelines.
• The guidelines were first setup in a 1952 case
  involving Ruff v. Ruff it was later modified in
  1966 in the case of Fischer v. Fischer.
• The factors require the judge to consider the
  earning ability of the parties, their respective
  ages, their physical and health condition, the
  length of the marriage and conduct of the two
  parties while they were still married, amongst
  others.
• Based on the above factors, the court will strive
  to make an equitable division, not necessarily
  sharing the property equallysometimes, it is not
  a win-win for both parties.
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• 2. During The Marriage Is The DURATION Between
  The Wedding And Divorce
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• There is a lot of assumption that the period
  between the wedding and the divorce is
  represented as during the marriage.
• But here is the kicker
• The law does not see it in that way. In some
  states, the court gives the divorcing couple the
  chance to pick the date of valuation of the
  marital property.
• However, the court has the right to annul the
  valuation date if it is unable to agree with the
  proposed time picked by either of the divorcing
  couples or both.
•  In such cases, the court goes ahead to choose a
  date.
• So, does this mean anything?
• Yes, it doesbecause some assets can face a
  drastic fluctuation in value to the date
  alteration.
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• 3. If I Owned It Before Marriage, Then It is Mine
  Forever

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• 2. During The Marriage Is The DURATION Between
  The Wedding And Divorce
• There is a lot of assumption that the period
  between the wedding and the divorce is
  represented as during the marriage.
• But here is the kicker
• The law does not see it in that way. In some
  states, the court gives the divorcing couple the
  chance to pick the date of valuation of the
  marital property.
• However, the court has the right to annul the
  valuation date if it is unable to agree with the
  proposed time picked by either of the divorcing
  couples or both.
•  In such cases, the court goes ahead to choose a
  date.
• So, does this mean anything?
• Yes, it doesbecause some assets can face a
  drastic fluctuation in value to the date
  alteration.
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• 3. If I Owned It Before Marriage, Then It is Mine
  Forever
• It may sound unfair, but it is an absolute fact
  property owned by a party before marriage is not
  excluded from consideration, valuation, and
  sharing.
•  Except in a case where the assets of one party
  were excluded beforehand by a premarital
  agreement, all the assets owned by both parties,
  gotten individually or jointly, are placed on the
  table for sharing.
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• Final WordHow NOT To Be Caught Unawares
• For you to avoid any surprises, it is best to get
  the help of a professional and experienced
  property division lawyerwho will go ahead of you
  to do all the necessary research and findingsso,
  you can be adequately defended in court and get
  your desired assets.
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The End

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