When dividing property in a divorce, several additional factors are taken into account beyond the basic categorization of assets. These include:
- Professional Licenses or Degrees:
Although the license or degree itself isn’t treated as marital property, the court may award reimbursement for any actual financial contributions made by one spouse toward the other’s professional education. This reimbursement, however, does not grant a share in the overall value of the degree. - Pension Benefits:
Any pension benefits that were accrued during the marriage—such as profit-sharing plans, 401(k)s, and other retirement funds—are considered marital property and are subject to division, regardless of whether the non-working spouse contributed to these funds. - Personal Injury Proceeds:
If the cause of action for personal injury arises during the marriage (up until final separation), the proceeds from such claims are treated as marital property. - Marital Debts:
Debts incurred during the marriage are generally classified as marital. In determining how these debts should be divided, courts look at factors like the purpose of the debt, which party incurred it, who benefited from it, and who is best able to repay it. - Goodwill:
The reputation and client base of a business or professional practice can be assigned a dollar value and is considered marital property to that extent. - Future Interest:
Any potential future interest in a property is not subject to distribution as part of the property division process. - Tax Consequences:
While property transfers or equitable distribution payments are not taxable at the time they occur, any future sale of that property will trigger tax liabilities.
In general, property division focuses on the past contributions and acquisitions of the marriage, whereas alimony is oriented toward ensuring future financial stability for the disadvantaged spouse.
Divorce Lawyer R. Badet is an experienced divorce attorney dedicated to guiding clients through every stage of the divorce process, including complex property division issues. With a deep understanding of family law and extensive litigation experience, he is committed to achieving the best possible outcome for your situation.
For more information about your legal rights and options, please visit www.lawyersfordivorces.net or call for a free consultation.