One of the biggest issues when a couple divorces is child custody and support. However, one of the second most common discussions between divorcing couples is property division. Typically, both parties have some idea as to how assets should be divided.
To help you understand how assets are divided in Rhode Island, it is important to understand property division laws. Here is what you should know:
What is separate and marital property?
First, it is important to differentiate your assets. There are two types of assets in a marriage: separate and marital property. Separate property includes any assets that were obtained prior to marriage, such as an art collection, clothing or debt. Gifts and inheritance may also be considered separate property.
Marital property includes assets acquired after marriage. Some common marital assets include investments, business gains, tax refunds, vehicles and real estate. The difference between separate and marital property is often key in determining who gets to keep what after a divorce.
What is equitable distribution?
In Rhode Island, assets are divided by equitable distribution laws. Unlike other states that divide assets evenly (50/50), Rhode Island’s laws state assets are divided by what is fair. What this means is that a judge may consider a few facts before dividing assets. Some common factors that can influence asset division include:
- The cause of a divorce
- Length of a marriage
- Income and savings of both parties
- Financial contributions by both parties
- Education and training of both parties
- Age of both parties
- Custody of children
A couple can work together to decide how assets are marital divided. However, if a judge reviews the agreement and believes it is unfair or has issues, then they may request a new agreement. If a couple cannot agree to the division of property, a judge may make a ruling for them.
How can you protect your assets?
There are ways to predetermine where assets go after a divorce. For example, a couple may agree to a prenuptial or postnuptial agreement. These agreements can help couples decide what assets they stand to keep after a divorce, such as business investments or debt.
Couples can seek out legal guidance to help them protect their assets and work through a divorce.