Divorce is a difficult phase for those undergoing it and drains you emotionally, physically and financially. Divorce has various critical aspects for allocating financial assets to custody. All these aspects need to be discussed with utmost care and sensitivity as it involves significant life decisions.
Asset protection in such cases becomes a big deal for both parties and therefore, in this article, we will discuss the protection of assets mainly in divorce cases. If you are in the middle of a divorce case in Ottawa or any of your loved ones are involved, you can consult a lawyer for better asset protection during a divorce in Ottawa.
What is Asset Protection in Divorce Cases?
Asset protection is a component which refers to legal strategies and actions taken by individuals to safeguard assets, including property, investments, businesses, and other valuable possessions. The main goal of asset protection in divorce cases is that one’s asset is protected while fairly distributed with the other partner. There are various agreements and legal proceedings in this asset protection, and you must be aware of those dealings.
How Assets Are Treated in Divorce Cases?
The first step in asset allocation in divorce cases involves the recognition of properties. Firstly, the court decides which is considered a marriage asset and an individual asset. Some of the marriage properties are as follows, which you and your spouse can acquire after the marriage:
- Primary residence
- Rental homes
- Vehicles
- Bank accounts
- Taxable investment accounts
- Business assets
- Antiques and collectibles
- Pensions and utilities
- Savings
On the other hand, the separate property is considered one of the properties you individually own. However, it will be decided by the court and the state laws, which will be regarded as separate property.
How Does Asset Valuation Take Place in Divorce Cases?
Asset valuation in divorce cases involves a critical position, which helps divide the marital property. For fair and equitable distribution, courts follow a few steps in divorce cases. Some of the important steps are, firstly, the identification of assets. The total investment is identified and gauged in its value for proper distribution.
The second step involves determining the marital and separate property of the individuals. After this process, there will be valuation experts who will decide the worth of the asset, which can also include property valuation, business valuation, financial asset valuation, personal property valuation and debts and liabilities. There will be expert testimony in such cases, and the final decision will be in court, and both parties have to accept the decision.
So, this is the complex process of asset distribution in divorce cases. It is always better to consult a lawyer who can help you deal with the intricacies of legal actions.
