Essential Insights into Financial Settlements Post-Divorce

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What You Need to Know About Financial Settlements After Divorce

Divorce not only brings emotional stress but can also lead to financial difficulties. Not every divorce involves a bitter battle over property or alimony. Many couples manage to settle their differences amicably. However, if the differences are too big to resolve, either partner can ask the court to divide their property. Courts consider each family’s unique situation and various factors to make decisions.

A divorce should be fully settled, including property division, within three years of filing. All property acquired during the marriage is considered community property and should be split equally during a divorce, according to the Family Code.

Understanding Common Property

During the marriage, all income each spouse earns counts toward the couple’s total income. Everything bought or invested with these funds is community property and belongs to both spouses equally.

Handling Financial Assets

All money in one partner’s bank account during the marriage belongs to both equally, unless exceptions like gifts or inheritances apply. The same rules apply to securities accounts, regardless of whose name is on the account.

Is Property Always Split 50-50?

Usually, yes. It doesn’t matter if one partner earned more; both partners are treated equally regarding ownership rights.Even if one stayed home while the other worked, both have equal ownership rights as long as there’s a reasonable explanation for why one couldn’t earn independently.

Defining a Financial Settlement

A financial settlement after divorce is an agreement on dividing finances and assets acquired during the marriage. A prenuptial agreement can also outline who keeps what assets and debts. These agreements can cover any agreed-upon aspects of property division.

Seeking a Fairer Settlement

If one partner misused household money, taking the matter to court might be the only option. If it’s in the children’s best interest, the court may also grant more than half of the property to the spouse living with the minor children.