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Divorce Financial Marriage

Division of estates in divorce

It is imperative that both spouses know the full extent of their assets and liabilities.

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So often, the non-breadwinner has no idea of the true financial situation, leaving that side of the marriage to the spouse to deal with.

But it is important to know about each other’s finances: what you each earn, what provident funds exist, and whether there are shares, offshore assets, trusts and so on.

The more you know about the other’s finances the less time will be spent scratching for information and the more you will curtail unnecessary litigation and legal costs. (As an aside, I do want to mention that those couples who start off with clear agreements about money and parenting responsibilities are less likely to seek a divorce.)

Asset splits become difficult and complicated when the boundaries of what first belonged to whom get crossed. For example, if one partner sells a house (excluded from the accrual system) and then puts this non-joint money into a joint asset such as another house, without a clear agreement about the split of the joint house or interest on the investment in the joint estate.

Normally a marriage without the accrual is more clear cut in divorce. It can, however, have negative consequences for the non-breadwinner if agreements have not been put in place before the marriage or before an asset is acquired.