If you and your spouse are facing a divorce, you may be dreading the property division phase of the process.
The more assets and debts you have, the more complicated property division will be. Your concerns may include dividing debt, splitting pensions properly and achieving equal net share.
Making a list
Although divorce is certainly an emotional event, it is best to approach property division in a straightforward manner. Begin by making a list of all the assets you own. Designate which items are community property acquired during your marriage and which are separate property. Assign a value to each. You must declare all your assets and debts anyway to complete the required Schedule of Assets and Debts.
Separating debt
If you have real property to sell as a result of the divorce, you might use some of that money to pay off your credit card debt. You might also agree to pay off the high balance on a joint credit card to equalize other debt you are dividing.
Dividing a pension
A pension may be one of your most valuable assets, but the process of dividing a pension is far from simple. This will require a qualified domestic relations order (QDRO) approved by the benefits provider as well as the judge. Rely on your attorney to prepare the QDRO.
Achieving equal net share
Your goal as you reach the end of the property division process is to come as near as possible to achieving equal net share. When you add up the value of all your assets and subtract all your debt, what remains is the net value of your community estate. And this is what you and your spouse will divide.
