Dividing major assets when there’s not much to go around

Dividing major assets when there’s not much to go around

| Feb 4, 2021 | Property Division

Many couples who decide to divorce don’t have much in terms of assets. They may have one or two large assets, such as a home or vehicle, but otherwise have only small assets.

In cases like this, it can quickly become a fight to get the most out of the large assets. A husband or wife might fight to keep the family home, for example, hoping that they’ll get the larger payout and not have to compensate the other spouse for the asset.

When you divorce, large assets need to be appraised

One of the things to remember is that large assets should be appraised before you try to decide what you want to do with them. Asset division doesn’t just work by giving one person one item and then giving the other another one. Instead, you’re dividing the value of those assets.

If your home is valued at $350,000 and you can make a profit of $200,000 by selling it, then both spouses may have an opportunity to seek out that value during the divorce. It may turn out that one spouse gets more or less of that value through equitable distribution rules, but it would be unlikely that one would completely lose out.

Do you have to sell a large asset during your divorce?

With a major asset like a home, you don’t necessarily have to sell the property to settle your divorce. You may agree to split the profits when the home does eventually sell in the future. You might decide to pay out your spouse or accept a payment from your spouse to buy your share of the property. You may also decide not to sell the home and to rent it to others, so both of you split profits each month.

You can find solutions to help divide your debts

There are plenty of solutions for people who are dividing major assets, even if there isn’t much to negotiate. Whether you have a single large asset or multiple assets to divide, negotiations will make a difference as you determine how much you’ll walk away with in the split.