When dividing assets during divorce, the court can categorize your properties based on when you acquired them. If you obtained them during the marriage, it is marital. Non-marital assets are those you receive before the marriage or from sources directing it only to one party, such as inheritances. However, certain asset types can be challenging to categorize because they are neither marital nor non-marital.
The following categories exist for complex properties:
- Both marital and non-marital – These are properties obtained through traceable resources shared by the couple during their marriage. This classification can include a house that one party bought before marrying and then used the marital property to pay its mortgage.
- Commingled marital property – These assets should be non-marital but ended up combining with marital property. These instances can be more challenging to resolve, necessitating the court’s input to determine the appropriate category.
The divorcing couple can divide these properties and agree on who gets what. It might only be a valid option if the parties are on good terms and can compromise to create an arrangement that works.
How does the court resolve complicated property issues?
Unique property types can be harder to categorize and divide, but the court can take specific measures to do so. When it comes to joint properties, they can order the parties to sell them and divide their earnings. However, a judge cannot transfer titles between parties.
Instead, they can order one party to compensate for their part of the marital property’s value. Additionally, a court can create orders transferring ownership interests of personal property, depending on the circumstances.
Seeking legal advice on property division
If you and your former spouse have complex assets that can be difficult to divide, it might be best to consult an attorney. It could help you determine your options and whether you can settle issues out of court. It can also help you navigate the process and prepare for any roadblocks that may happen later.