Depending on the state in which you reside, one of two different standards is applied regarding property settlement issues, according to the American Bar Association Section of Family Law. These standards are used judges to divide assets and debts between divorcing spouses. A couple that reaches a settlement agreement does not have to adhere specifically to the state's standard. In a community property state, assets are divided equally between the spouses. In an equitable division state, assets are divided fairly between the parties. Income of the parties plays a role in the settlement process.
Considerations
If one spouse earned a significantly larger income during the course of the marriage, part of the settlement may be an agreement regarding alimony or spousal maintenance, according to "The Complete Divorce Handbook: A Practical Guide" by Brette McWhorter Sember. Such a settlement agreement recognizes the need for spousal support to permit the lower income earner the ability to adjust to post-marital life and to maintain a reasonably similar standard of living.
Personal Property and Real Estate
The fact that one spouse earned even a lion's share of the income does not entitle her to a larger share of personal property purchased during the course of the marriage. Under the laws of all states, the incomes of the parties are considered the joint assets of both spouses, according to Nolo.
Features
A comprehensive divorce settlement agreement resolves not only financial issues, but also those associated with children born during the marriage. Child support is included with these matters. The incomes of the parents are relevant to child support settlements, as well. Divorcing parents are obliged to follow the child support guidelines established by state law, even when negotiating an agreement regarding that obligation.
Warning
A judge will not approve a settlement agreement she deems lopsided or unfair. Keep in mind that a judge's review of the agreements you reach with your spouse regarding financial and other issues is not merely cursory or a formality.
Expert Assistance
Resolving financial issues in divorce cases represents a complex matter in many cases. Therefore, before you embark on settlement negotiations with your spouse, consider seriously engaging the services of an experienced divorce lawyer to advise you and protect your interests. The American Bar Association provides different resources designed to assist you in finding and hiring a qualified attorney.
References
- American Bar Association: Section of Family Law
- "The Complete Divorce Handbook: A Practical Guide"; Brette McWhorter Sember; 2009
- "Nolo's Essential Guide to Divorce"; Emily Doskow; 2008
