property division

Does equitable distribution in Massachusetts mean equal?

The termination of the marriage is rarely the most hotly contested aspect of a divorce. Chances are that by the time the decision has been made to file for divorce, neither party is prepared to spend a lot of time or money to keep the marriage together. Property division issues become important because they affect where each of the spouses will live, their standard of living, retirement plans and other post-divorce aspects of their lives. It is important, therefore, to understand how the courts in Massachusetts handle the division of assets in a divorce. Equitable distribution refers to the method by which Salem courts determine how property that the parties acquired during their marriage should be allocated in the divorce. There are several issues that must be dealt with, including how the property was acquired, when it was acquired and the contributions each of the spouses made to acquiring or improving it. One thing that is clear under the law is that equitable distribution does not impose any obligation on judges to order an equal property division. The law asks judges to consider a number of factors in deciding on a distribution that would be equitable under the circumstances. These factors include: How long the parties were married to each other The age and health of the parties Whether the parties are working and their incomes relative to each other The employability of the parties and their vocational skills The needs of dependent children Non-economic contributions by a spouse who

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Divorce and property division

Spouses preparing for divorce might benefit from understanding more about some of the factors that can dictate how real estate assets are allocated by a formal proceeding. The outcome of property division typically depends on the state laws governing the divorce. Many separated spouses struggle with determining how much each party is entitled to receive from the marital estate. State laws may dictate whether divorcing spouses must split the value of the home equitably, or if one party is entitled to keep the property in its entirety. Some spouses are successful in avoiding contentious disputes and lengthy proceedings by selling their property before filing for divorce. When a spouse is unable to sell a house before filing for divorce, it may be used against them as leverage in the negotiations or formal hearing. Dividing the property equitably is the primary point of contention for many divorcing couples. Often times, dividing the proceeds from the sale of the home is far easier than negotiating the rights to retain the property. Spouses may also benefit from recognizing the significance of additional costs that are attached to retaining the home, such as the commission for the real estate agent and capital gains tax. Some individuals make the mistake of letting their emotions dictate their decision making while undergoing the divorce process. The emotions often subside, but the consequences of those rash decisions may be everlasting. Divorce lawyers may be able to assist separated spouses prepare for property division. Legal counsel might be able

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The role of artwork in a divorce property division

Massachusetts residents who are seeking a divorce may be interested in some information on how artwork is treated at the end of a marriage. Depending on when it was created, the pieces may be up for grabs when marital property is divided. When a couple makes the decision to divorce, they need to go through the property division process and divide their existing marital assets. When one of the spouses is an artist, they may be unclear about what to do with their artwork. An artist often believes that their works belong to them, because they created the pieces. In the eyes of the law, however, the artwork itself is simply another piece of property owned by the couple. Because of this, the artwork is subject to the same equitable division principles as the rest of the former couple’s assets. Artwork presents complex property division issues due to its often-subjective nature. A monetary value needs to be assigned to each piece by an appraiser or gallery owner. In addition, any licensing agreements for the artwork created by one of the parties needs to be included as property and revenue that belongs to the marriage. If artwork was created prior to the marriage, though, it will most likely not be part of this marital property division. Failure to properly account for the value of this artwork could open the creator up to allegations of fraud and could end up losing them all of that property. To avoid this, legal counsel may

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Impact of property and debt division on credit

As a part of the property settlement in a Massachusetts divorce, the debts the couple have will also be divided in the divorce decree. When a debt is allocated to a spouse who fails to pay or pays late, the credit of the other spouse, if the debt was one that was held jointly, may be negatively impacted despite the order. Creditors are not parties to divorce actions, and as such, they can still hold anyone listed on an account liable for its balance. This can cause a problem in the event the spouse that is supposed to repay the debt according to the property settlement fails to do so. His or her late payments or non-payment can be reported on the other spouse’s credit report, and the company may initiate collection actions against either or both spouses. One option a spouse has in the event his or her ex fails to pay a debt that was required to be paid under the property division order is to file a motion for contempt with the family law court having jurisdiction over the divorce action. The court may then take steps to enforce its orders. When people are getting divorced, it may be a good idea to try to get their names off of any jointly held accounts, including debts for which they will not be responsible under the property settlement order. The marital property will include the debts incurred during the marriage, and those debts should be expected to be

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Courts consider several factors in marital property division

Massachusetts law provides some specific guidelines for the court’s consideration regarding property division in a divorce proceeding. Since Massachusetts is an equitable distribution state, the court is charged with facilitating a settlement that is deemed fair to both parties. This approach differs from a community property division in that “fair” may not necessarily mean “equal.” When a mutually satisfactory division of assets cannot be reached in a divorce proceeding, the court first must determine what assets and debts are to be considered marital property. It must then proceed with an appropriate valuation of that property. Once the property is valued, the court then issues a ruling setting forth a division of property deemed to be equitable. Several factors must be considered by the court in its decision. These factors are defined by Massachusetts statutes, including the length of the marriage, the conduct of the parties during the marriage, the age, health, station and occupation of the parties, the amounts and sources of income, vocational skills and future earning capacities, employability, estate, the liabilities and needs of each party and the amount and duration of any alimony awarded. Additionally, the present and future needs of dependent children must be considered. The court may also consider each party’s contributions with regard to the respective estates, the contributions of each party as homemaker and other specific considerations such as health coverage. The stress of a divorce proceeding can be considerable. Seeking the advice of a family law attorney may help to facilitate the

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Division of marital property in Massachusetts

During a divorce proceeding, distribution of marital property can be a complex process. Massachusetts has established statutes regarding property division of various types of assets. Fair distribution of assets, including alimony, health insurance and business values, is ultimately determined by the court. The division of marital property has tax consequences that must also be considered by both parties. In addition to one party paying alimony to the other, the commonwealth’s courts may also order that one spouse pay for vested and non-vested retirement accounts, investments made together and funds earned during the marriage. Other assets that the court may assign to be distributed include retirement accounts, military and veteran’s pay and pensions, private pensions, profit-sharing ventures, annuities, deferred compensation and insurance settlements. Determination of equitable distribution also includes physical property or the property’s value. When performing a complex property division, the court takes into consideration the needs of dependent children. Additionally, it factors the ability of each party to earn a living, the contribution that each spouse made to the household income and the contribution that each made in running the household. The values of shared assets must be verified when marital assets are distributed during a divorce. The values of personal property, any jointly held business, land, homes and other valuables may be a contentious issue between the two parties. An attorney can help with a thorough investigation and analysis to ensure that their client receives an equitable distribution of marital property at the moment of the divorce and

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Dividing property after a divorce

If a divorcing couple has not settled their division of assets through a signed Marital Settlement Agreement in Massachusetts, the issue is left to the courts. Massachusetts is an ‘equitable distribution” state, meaning that if the parties cannot agree on how to divide their assets and debt, the Family Court within the Judgment of Divorce will award property based on what is deemed to be fair. It is important to know that ‘equitable” and ‘fair” are not synonymous with a 50-50 split of marital debt and assets. When determining how much each party gets, a number of factors will be taken into consideration. These factors include the income of each party and their current occupations, vocational skills and potential to be hired. Each party’s health and age are also taken into consideration. The length of the marriage and the behavior of each spouse throughout are also used when determining property division. To determine the assets and debt that must be divided, the Family Court will first determine which assets and debt are actually marital and assign dollar amounts. Once the monetary value is determined, property and debt will be assigned equitably. A divorcing spouse who has not been able to reach a settlement on property division without the court can benefit from a divorce attorney who can be a strong advocate. It is important that the judge has a clear idea of the spouse’s situation and that the spouse receives a favorable ruling. Source: Divorce Support, “Massachusetts Property Division Factors“,

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Massachusetts property division could involve pet ownership

Massachusetts pet owners know that animals can, at times, feel like their children. Individuals may care for their pets much like they would care for children, from sending them to day care to buying them clothing. Unfortunately, in the eyes of most court systems, pets are considered property and, in the event of a divorce, pets may come under the jurisdiction of the property division processes. Pet ownership can become a point of contention for individuals who are going through divorce. Depending on when the pet was acquired, the court could have to decide which party maintains ownership of the pet. If the pet was given as a gift or was owned before the couple got married, the animal may be considered separate property, and this type of property cannot be divided by the court. In such a case, the original owner of the pet would maintain that ownership. However, if a pet was brought into the family together after the couple married, the situation may become more complicated. If the pet is considered community property, the court may decide which party may keep the pet. Though this may seem disheartening for the party that does not maintain ownership, the individuals may be able to create a visitation schedule similar to a child custody schedule that could allow both parties to see the pet. Property division is often a complicated endeavor when it comes to divorce, and when something so important to a party, such as a pet, is involved,

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