Property Division
We Take Justice to Heart
Racine Divorce understands how trying a divorce can become. We want to help you make the best choices, the right choices for you and the ones you love.
Through our online and in person services, we are committed to help you obtain the outcomes you want and need in order to move forward with your life plans and goals. Ideally, we would like to help you move through a peaceful and rational divorce process. Although this doesn’t always end up being the case, we will give you our very best so you can work towards a healthy, sustainable future.
Our priorities are your priorities.
What is Property Division?
Shared property comes with all marriages, but so does the division of it when marriages end. Property includes everything from your house, to your car, to your jewelry, to your bank accounts. Every penny must be accounted for, and therefore divided fairly and justly between two separating parties.
Here at Racine Divorce, we take every detail into consideration and work to secure you the best possible outcome. Who gets to stay in your house? How will your financial assets be divided up? Our experienced specialists are fluent in the nitty gritty details you might not have considered and will review with you all possible outcomes before you make any decisions.
What Counts As Property?
Property comprises anything that can be sold or bought such as:
Cars, Clothing, Furniture, House, and Jewelry
It also includes valuable assets such as:
Businesses, Bank Accounts, Life Insurance, Stocks, and Pension Plans
When you decide to separate, the court has to determine how to divide the property you shared during your marriage. Note that the division has to be formally recognized by court authorities regardless of an informal agreement or legal mandates. Therefore, once a judge signs off on your deal, it is officially respected and upheld in the eyes of the law.
Who Gets the House?
The most challenging decision during a divorce is determining who gets the house, which in most cases, is the most valuable asset for a couple. The first thing you need to consider is who owns the property. If you purchased the house after getting married and in a community property state, you are both entitled to a 50% equity. Therefore, when the house gets sold, you both receive an equal share. If you find yourself in an equitable situation, be prepared for a “dominant spouse” scenario where the “weaker spouse”, most often women, get unfairly taken advantage of financially. Therefore it is critical to seek legal counsel and guidance to secure and defend your rights.
You also have the option to claim full ownership of the house and pay your spouse the other share. Some costs you should consider that come with this scenario include insurance, mortgage payments, property taxes, and utilities. In complicated situations, it is up to the court to ultimately decide who is awarded what. It is not guaranteed you will get an equal share. If you entrust our legal counsel at Racine Divorce, we will work on your behalf to secure the optimal deal and outcome that you deserve without paying exorbitant amounts in legal fees and court dates.
Where Do I Start?
Deciding who gets what can be one of the most heartbreaking and tedious endeavors of your divorce. After years of sharing property, from your cars and bank accounts to your home and everything that furnishes it, every item must be accounted for and divided accordingly. Overwhelmed? Let us help. Our mediators and legal team will work with you from start to finish to ensure your separation of property is fair and just.
Community Property
Community property is anything that both parties purchase during partnership or marriage. It might be items you purchased together, like furniture or investments, that belong to both of you. Additionally, it includes all the earnings you both received during your partnership as well as any debt you accrued. Community property includes financial obligations you’ve accumulated together. This includes anything from credit cards to your mortgage.
Separate Property
Separate property is what you owned prior to a domestic partnership or marriage. This includes gifts and inheritance to a single party, even if it was given or inherited during your marriage. But this sole claim to ownership must be explicitly described or explained in formal writing before you file for the division of shared assets. You must be able to prove the asset is your own to claim. Additionally, any amounts you earned from your separate properties fall under this category, which might include profits and rents. For instance, if you purchase furniture with some of your inheritance, you are the rightful owner of that property, regardless of when you bought it.
Separate property is also anything you buy after your divorce, including any earnings. Which is why filing for a legal separation is strongly advised to help assess and divide any shared property in a just and fair manner. Therefore, separate property will securely remain yours, particularly if you acquired or invested any sum, after your divorce date. Keep in mind that the source of money is the primary determinant of your property.
Commingling Property
In some cases, you may have some property that is neither community nor separate property since they are in a mixed state. It becomes a little bit complicated to make a final decision on the shared assets in such a case. For instance, let’s assume you had a house before your marriage, then you decide to sell it and use the money as a down payment for a new one you will share with your partner. The amount you used to pay for a new house is considered separate property. However, if you make mortgage payments for the remainder of the loan using either of your earnings, the amount you invest is considered commingled property. Another common scenario is when either of you has a pension. The contributions you made before your domestic partnership or marriage is separate property. However, the classifications change for the money you contribute as a couple. In such complicated cases, you can trust our experts here at Racine Divorce to advise and manage the division of your property and assets – hassle free!