Family Law
Equitable Distribution
Marital property is divided through a process called Equitable Distribution.
This is a three step process. The Court may become involved and assist with
all issues that the parties can't agree to.
1) Determine what property is Marital (or otherwise divisible)
Marital property is any property, including real estate, personal property,
retirement accounts, securities, and debts, that was acquired during marriage.
Physical or real property held prior to marriage will probably be considered
separate. In most cases, accounts or debts will be considered marital to
the extent that they were incurred during marriage. Once all property is
classified, it is valued.
2) Valuation of Property
Once classified, all property must be valued. This means that you must determine
the actual value of all property and debts as of the date of separation.
If the parties cannot agree on an amount, you should have an appraiser value
any and all property of significant value. If you have any retirement accounts,
you should have an accountant value the account, even if you know how much
is in the account. A $50,000 IRA is likely worth far more than $50,000,
as it will gain interest over its lifetime. You should make sure that you
consult with an attorney before you agree to any valuation scheme to make
sure you are maximizing that you receive a fair and equitable share of the
marital property.
3) Division of Property
Once valued, everything is put into a spreadsheet and divided. There is
a presumption that each party will take 50% of the marital property. The
Court may look at several factors to determine whether either party should
receive more than half of the property. It is important to consult with
an attorney to determine whether any of these factors are present and to
make sure that you assert that you are entitled to an unequal share of the
marital property.
The Court will Order you to participate in mediation or a judicial settlement
conference in any action for Equitable Distribution. This is an attempt
to settle all matters without having to have a hearing. It is incredibly
important to be prepared before you attempt negotiation. You must have a
clear idea of the value of all property and be prepared to propose a division
of property.
Contact DeWitt Law for assistance with the
equitable distribution of your property.