Going through a divorce is never easy no matter who you are. It is an extremely emotional process, and to top it all off, you also have to figure out how to split everything you and your spouse own. Who gets the house? What about the savings? And let’s not forget the debts that you both accumulated! The process of dividing assets can be complicated, but having a good understanding of how it works can also help you better prepare yourself and get a fair outcome. In this article, we will mention five factors that can influence how assets are divided during a divorce.
1. Marital vs. Non-Marital Assets
Before you start dividing everything you have, you must sort out which assets are considered marital and non-marital. Marital assets will be things that you have acquired during marriage, these things also include property, savings, and investments you have bought and made even if they are only under one spouse’s name. On the other hand, non-marital assets are things you have before marriage including gifts that were given to you specifically as well as inheritances. This makes having proper documentation to prove ownership important since they can give the courts a clear answer to who owns what and avoid any long-drawn arguments.
2. Financial Contributions of Each Spouse
Divorce asset division is not just about giving the one who earns money more, contributions can come in many different forms. A good example of this is one spouse may have been the primary breadwinner for the household, but the other may have sacrificed their career to take care of the family. Courts often will take these contributions into account when deciding asset division, whether it be financial such as being the one who pays the bills, putting in the most money for the family, and providing the financial needs for home improvement or non-financial, such as childcare, home maintenance, or supporting a spouse’s career development. These factors can impact how assets are divided.
3. Debts and Liabilities
It’s not just assets that get divided, but debts do too. Things like mortgages, car loans, and even credit card debt that have accumulated during the marriage will be considered joint liabilities to the courts. They typically consider who is the one who incurred the debt and who has the means to pay it off. Hence, transparency about financial obligations is essential to ensure a fair division and prevent any financial issues that may happen after the divorce.
4. Future Financial Needs
A fair settlement for divorce asset division is not as simple as splitting everything 50/50, it is also about making sure that both parties can move forward with the worry of overwhelming financial debt. The courts will often look into factors such as income disparity, health conditions, childcare responsibilities, and future earning potential when deciding how to split the asset between the 2 parties. This is especially important when one spouse is financially dependent on the other, often leaving them to receive a larger share of assets or get support from their former spouse to help them maintain stability after the divorce.
5. Prenuptial and Postnuptial Agreements
Sometimes, couples will have a prenuptial or postnuptial agreement in place when they get married. In cases where this is involved, it can significantly impact the divorce asset division. These agreements typically outline how property and finances should be divided in the event of a divorce. And if the agreement is legally valid, the court will usually uphold it, it will also make the asset division process more straightforward since there is no need to hold any discussion regarding who should own certain assets.
Conclusion
Now that you know 5 of the key factors that can impact the outcome of divorce asset division, we hope that understanding these key factors can help you in the event of a divorce and you can get through it with a bit more confidence. Do understand that every situation is unique, and the outcome depends on many different factors. That is why seeking the help of a professional for legal advice can help you get a fair settlement and protect your financial future. So if you are in need of help in a divorce, seek the help of the right divorce lawyer in Kuala Lumpur and you will get through this challenging time.
