Divorce and the division of assets

Ota yhteyttä

Divorce and the division of assets

Ota yhteyttä

Divorce and the division of assets

After a divorce, assets must be divided and some individuals will also need to reorganize their bank loans. The division of assets refers to separation or allocation of assets, or a combination of both. This is why banks are also interested in asset division or separation. It is important to gain early knowledge about one's rights, obligations, and potential tax consequences related to asset division and other matters following a divorce.

Divorce and the shared home

The main concern after a divorce is typically the spouses’ home.

Who will move out of the shared home and how will living expenses be managed before a clear division of assets and the end of the financial ties?

Further questions may include for example: Does one of the spouses want to remain in the shared home and the financial means to do so? Or does both parties want to buy the home for themselves?

How is this situation resolved? Perhaps selling the home might be the only reasonable option, considering both the emotional distress and finances.

What about the order, should the home be sold or should the assets be divided first?

Divorce and asset division - No purchase contracts needed in a divorce

The marital property is divided through a separation of assets, where the net value of the assets of both parties are combined and split evenly between them.

The right to request asset division does not expire. Therefore the separation or division of assets is highly recommended as soon as possible after the filing for divorce.

Asset division can be completed as follows:

Either one of the spouses can request a division of assets and thus initiate the process.

In the process, the assets and debts of the spouses are listed, followed by the creation of a division calculation ending in the implementation of the actual division of assets.

The assets and debts are determined based on the date of filing for divorce (= division basis). But the assets are valued based on the date of asset division.

Lastly, assets are registered to the parties and any necessary tax returns are made.

Divorce and prenuptial agreements

If spouses have a prenuptial agreement or have inherited or received property through a will, which is excluded from the marital property, the division of assets is referred to as separation.

Prenuptial agreements can be partially or totally excluding, which in turn means that there might be assets to be divided and separated.

At times, a previously made prenup might be sensible to be renewed have it registered. A prenuptial agreement can be made at any time before filing for divorce. And even if a divorce has been filed with the court, it can still be withdrawn.

In a separation of assets, any joint ownership between the parties is terminated. This means that there is no need for a separate purchase contract.

Assets and debts to be listed for asset division and separation

For the purpose of listing, all assets and debts are itemized regardless of whether it is marital property or non-marital property. Only after listing, assets are separated or divided equally between the spouses.