question.jpgIn Divorce Law

Once the division is set, how is it allocated?

The actual mechanics of property division is as complicated as the distribution; you can’t hardly split the house down the middle or divide an earring set, right? Instead, divorce courts generally give one spouse his or her part of the assets and the other the remaining assets to achieve the correct distribution. Courts will divide stocks, pensions, and cash according to the equitable division (50-50 or 70-30, for instance). Another method is to sell the assets and split the money, a particularly wise method if there is a ready buyer or one spouse can’t afford to buy out the other’s portion. Still, in other instances, allowing one spouse to buy out another’s interest (such as in a small business) is the better method; this can be done with cash, or in some cases, one spouse can exchange a portion of his or her assets for an equal portion of the other’s assets (for instance, giving up half a business in exchange for half the house). Buying out can also be done in installments in some cases. Courts frequently opt to divide the assets in such a way as to separate the spouses - so that, for instance, they are not co-owners of a business.