Division of property in divorce | When a couple decides to separate and divorce, they might think everything is divided half and half while the reality might be completely different – the professionalism and experience of your lawyer matters especially if one of the spouses is independent – want excellent results | 050-4095009.
So what is the division of property in a divorce?
Obviously you have something to lose in a divorce battle and not just money! You may lose control of your business, your freedom and your relationship with the children if you do not manage things wisely. With 2 decades of experience in achieving fair divorce agreements I will answer large part of your questions and concerns in advance, and show you how to avoid legal and financial hurdles.
Division of property in a divorce – How Much Will You Really Receive?
When a couple decides to separate and go through a divorce process, they encounter one problem that almost no couple misses – the division of property in the divorce. Each of the spouses brings with them into the marriage a certain type of property, and in addition, during the years of the couple’s life together, the spouses accumulate different assets. The division of property, in theory, should be simple: the joint property of the spouses will be divided equally between them. The exception to this rule will be any property which belonged to one of the spouses prior to the marriage, gifts and inheritances that the spouses received as an individual. Yet despite the theoretical simplicity, many couples find it difficult to divide the property in a way that is good and desirable to both parties.
The Solution division of property in the divorce
In most cases at least one additional person is needed, in order to assist the couple in decisions related to the division of property. This person could very well be a family lawyer, a mediator and the like. The family lawyer who accompanies the divorce property division process, should be vigilant, because there are many cases where one or both spouses are trying to obtain property fraudulently in various ways, such as hiding property, claiming that some property belongs to them from the time before the wedding, and more. The lawyer will sometimes recommend a private investigation and the like, in order to find out if there is indeed a fraud. In addition, the mediating lawyer will assist in solving the problems associated with the division of property in the divorce.
What does the law say about the division of property in a divorce?
During the discussion concerning the division of property in a divorce, it will be clarified and determined what is exactly the joint property of the couple. It should be noted that these are not only material properties that can be simply and physically divided, but also assets that are difficult to quantify, such as business reputation, economic reserve rights, social rights and more. A resource balancing process will then take place, with both parties receiving equal shares of the common property, as far as economic value can be defined.
What do you do when the parents demand to get back the money they had given to the couple when they were married?
When the young couple gets married, he or she sometimes receives large sums of money for the apartment purchase or a steady financial help from one or both parents. The parents give the money as a gift, out of a desire to help the couple at the beginning of their journey. There are also cases where parents help children even at later stages to ease the financial burden of the mortgage and raising the children. When the couple divorces, sometimes the parents quarrel with their son or daughter’s spouse, and demand the money back. The parents feel cheated and claim back their money which they have laboriously accumulated over the years. In other cases, the parents help their child who is going through some financial difficulties, wants to study, travel abroad, build a house or start a business. When the relationship is good, they give him the money as a gift. But if at a later stage the relationship breaks down, the parents may sue their money back claiming it is a retroactive loan.
How can parents claim their money?
The Family Court determines that if the relationship between the parents and the couple was normal at the time of giving the funds, it is a gift then. The party claiming these funds to be a loan, must prove his case. If the relationship was shaky at the time of giving the funds, it can be proved that they were indeed a loan. Parents should file a lawsuit against their children in order to try and get their money back. The parents cannot sue their child’s spouse because it is impossible to separate and say the funds were a gift only for their child and a loan for their bride or groom. The funds were given to the couple jointly, for common purposes such as buying an apartment.
Where does the divorce property claim take place?
The claim is filed by the parents in the Family Court by a family lawyer. The lawyer helps the plaintiffs formulate a claim file and prove that the funds were a loan and not a gift. The court will examine the allegations and circumstances of the granting of the funds, what was the nature of the relationship between the parents and the spouses, what was the intention of the parents when they gave the funds, whether it was clear that it was a gift or loan, etc.
What are the parents’ chances of getting their money back?
The chances depend on the extent to which the parents succeed in contradicting the recipients’ claim that this was a gift. When there is evidence that the husband or wife knew it was a loan, the plaintiffs win the case. It is important to sue with the help of a professional lawyer who is knowledgeable in family law and who will be able to build a solid case. If there was a signed agreement between the parents and the couple, it should be presented in court to strengthen the argument that it is a loan. Therefore, parents who give their son or daughter money and do not want the money to remain with the child’s spouse in case of a divorce, must have a loan agreement placed in advance. Such an agreement prevents future heartache from all parties and guarantees the refund in case of divorce. The contract guarantees parents peace of mind and serves as solid evidence in court. In a small family company that is a kind of sole proprietorship it is advisable not to divide the shares between the couple, in order to avoid Interpersonal frictions, which will eventually lead to a destructive damage in the company.
Division of Property in Divorce: Reasons to Avoid Transferring Family Business Shares to a Spouse
The reasons for not transferring the shares to the spouse include the following:
A. In a small family company, transferring half of the shares to the spouse can lead to endless quarrels in operating the company and paralyzing the company’s operations.
B. In a small family company, this may also lead to the value depreciation of the rights of the spouse who is not active in the company as a result of behavior patterns that the active spouse will adopt.
C. A financial arrangement that binds the couple to each other after their separation is not desirable and it unnecessarily prolongs the separation process.
The recommended solution:
Checking the value of shares through a company value expert. This is a person who is proficient in auditing and evaluations of companies. So it turns out that if it is a couple who both have rights in the company shares, then value is checked and the active party in the company pays the value of the shares to the passive side, and of course handles the division of property of the joint apartment.
Legal strategy to achieve the maximum
In each legal case management, the lawyer formulates a strategy in advance. The legal strategy varies from case to case and actually determines how it will be managed, what are the desired goals and what actions will be taken in order to reach them in the best way. Every divorce lawyer has his own legal strategies, however another part of the process and no less important is to make sure that you are attached to this strategy and that you feel comfortable with the course of action. If your lawyer’s strategy, for example, goes against your values, you can definitely consider changing it in order to feel more comfortable with the path you are taking.
You must remember that you are the one who will eventually have to live with the results of this strategy so it is important that you feel comfortable with it and that it does not contradict what you believe in. If your lawyer’s strategy is belligerent, uncompromising and encouraging conflicts while you prefer to end the relationship in a mature and respectful way, even if it involves legal battles, then do state your choice and clarify your position. It is important to know that you can succeed by acting wisely and with sophistication. wisdom does not mean throwing mud and lies at each other, but instead, managing a clever strategy that will lead you to the goals you have set at the beginning of the divorce process.
It is important to know the scope of assets and funds
One of the key areas that divorce process affects is the economic aspect. Both spouses are usually required to make concessions and a certain financial decrease in the standard of living is expected, so it is important to handle the separation correctly also from a financial perspective. In order for you to maintain your financial rights and receive what you deserve in a fair and complete manner, it is important to know comprehensively what are the entire funds, assets and rights which are registered in by each of the parties is.
After receiving the full economic picture, the actuary is contacted to make an opinion about the totality of the funds and rights in accordance with the alternatives to the division of property in divorce that are legally accepted in the event of divorce. If you do not know exactly what the scope of your joint assets is and what your financial resources are, you may find yourself losing money and your share in the joint assets. It is highly recommended to use a family lawyer who will help you get an accurate financial picture and ensure that your rights are maintained financially throughout the process. Family lawyers know how to locate assets and funds and how to determine based on their opinion The real picture and what are the economic options available to you.
