Tag Archives: divorce

Creative Ways of Handling Marital Property

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When parties are unable to reach their own decisions regarding how to divide their property, many courts often split the property evenly without regard to whether this split makes the most sense for the parties.  Through mediation, the mediator may suggest creative ways of determining how to divide marital property including:

Consider the Value to Life

Rather than focusing only on the monetary aspect of property, a mediator may suggest dividing property in a manner that takes into account the value that the property will add to each person’s life.  For example, if the couple has a marital home and a vacation home of very different values, the mediator may suggest giving each person one of the properties because each can provide a suitable residence to each spouse.  The same may be completed with vehicles and with recreational items. 

Adjust Spousal Support

Many courts do not use a specific formula to determine how much spousal support to award and instead look at a number of factors in determining this issue.  However, spouses are often better equipped to realize how much additional support will be necessary for the lower-earning spouse to maintain the same lifestyle.  The spouses can also consider trading off assets so that the spousal support obligation is reduced.  For example, if the couple owns additional residences that can be used as rental income, this amount of rental income can be deducted from the spousal support amount. 

Prolong Division

In some cases, it may not serve the parties’ best interests to liquidate assets immediately and divide them.  For example, the real estate market may be lagging behind and the parties may prefer to hold onto the property until there is new demand in the market.  Tax consequences may make it detrimental to liquidate stocks or retirement funds, so the parties may agree to an equalization later in time. 

Options Regarding the Distribution of Real Property upon Divorce

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When a couple divorces, real property is often the most expensive asset that they have to divide.  The parties may not be aware of the different options concerning how to divide this property.  Some options may include:

Selling the Property

If neither spouse wants to keep the property or believes that they would be unable to afford to keep and maintain it, selling the property may be the best option.  Once the property is sold, the couple would split the proceeds.  The proportion that each spouse is entitled to depends on whether the property is community property or marital property, how much each party contributed to paying off the property or enhancing its value and any agreement between the spouses regarding this distribution.

Rent the Property

In down real estate markets, the spouses may agree to rent out the property.  The rental income may be used to offset spousal support or otherwise supplement one of the spouse’s incomes.  The couple may also agree to split the income between them.

Agree to Sell

The parties may agree to sell the property but at a later point in time.  This type of agreement may include more details and instructions, including a minimum amount that a spouse would be willing to accept for the sale of the property and which real estate agency or firm to use for the transaction.

Buy Out a Share

Another possible option is for one spouse to keep the property by buying the other spouse out of his or her share.  This may be accomplished by substituting assets that are of a similar value to the other spouse’s share of the home.  The spouse who will retain possession of the home is often required to refinance the property so that the other spouse is not still financially liable or linked to the property.

The Win-Win Benefit of Co-Parenting Mediation

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The Win-Win Benefit of Co-Parenting MediationCo-parenting mediation has become a hot topic in the field of alternative dispute resolution.  As one of the easiest and most effective ways to negotiate parenting arrangements following a divorce or separation, co-parenting mediation allows divorcing parents to work out custody and visitation schedules that work best for them and their children.  It’s a process that keeps the power in the hands of the parents rather than allowing a judge to determine what is best for the family.  For this reason, most couples who have gone through the process are not only glad they chose mediation—they are universally convinced that it is the best way to do it.

Research shows that the negative consequences divorce has on the emotional wellbeing of children stem from children being separated from one parent or the other for a long period of time.  When children are accustomed to spending time with both parents and become attached to both parents, serious emotional consequences can result from a significant change in that way of life for them.

The good news is that when a married couple with children decides that they no longer want to be married, the separation does not have to be extremely difficult on the children as long as they are able to spend adequate and equal amounts of time with both parents.  The toll that divorce takes on the children can be significantly minimized through co-parenting and joint parenting arrangements, particularly if the parents are able to be “adult” enough to avoid a nasty divorce that drags the children in the middle and requires them to “take sides.”

For this reason, the benefits of co-parenting mediation are for the entire family.  The parents are able to maintain control over their family and the future of their family, and the children are able to maintain a sense of stability, despite the fact that both parents might not be living in the same household.  It’s truly a win-win situation in what could otherwise be a very negative experience.