When dividing property in a divorce, several factors are taken into account, including: (1) Professional Licenses or Degrees; (2) pension benefits; (3) personal injury settlements; (4) marital debts; (5) goodwill; (6) future interests; (7) tax consequences; and (8) alimony or spousal support.
Professional Licenses or Degrees:
While a professional license or degree itself is not considered marital property, the court may award compensation in the form of reimbursement if one spouse financially supported the other in obtaining the degree. This compensation is limited to actual financial contributions, and the spouse seeking reimbursement must be able to prove the expenses incurred.
Pension Benefits:
If one spouse accumulated pension benefits during the marriage, these are considered marital property and subject to division. This includes pension plans, profit-sharing, and 401k accounts, regardless of whether the non-employee spouse contributed directly to their accumulation.
Personal Injury Settlements:
Personal injury proceeds are deemed marital property if the incident that led to the injury occurred during the marriage, up until the date of final separation.
Marital Debts:
Debts can be classified as marital or separate. Debts incurred during the marriage are typically considered marital debts. When determining whether a debt is marital, the court will assess:
- The purpose of the debt
- Who incurred the debt
- Who benefited from it
- Who is best able to repay it
Goodwill:
The goodwill or reputation of a business or professional practice is regarded as marital property if it can be assigned a monetary value.
Future Interests:
Potential future interests in property are not subject to division at the time of the divorce.
Tax Consequences:
While property transfers or equitable distribution payments are not taxable when they occur, taxes will apply when the property is sold or otherwise disposed of.
Divorce Lawyer R. Badet
Divorce Lawyer R. Badet is an experienced attorney dedicated to guiding clients through every stage of the divorce process. Whether dealing with simple or complex cases, including spousal support, child custody, or property division, R. Badet has the expertise to secure the best outcome for your situation. Visit his website at www.lawyersfordivorces.net for more information on your legal rights, or call for a free consultation. With years of experience in both family law and criminal law, Attorney Badet is a highly respected litigation lawyer who offers skilled representation to clients in all matters.