Division of Property and Debt
The first step in dividing marital property is for each party to complete a property statement. The Plaintiff in the case must complete a Property Statement within thirty days of filing the initial complaint. The Property Statement is an itemization of all property and debts. The itemization must also include who currently has possession of each item and each item’s current estimated value The Defendant must be provided with a copy of the Plaintiff’s Property Statement. The Defendant can then add property that he/she believes was omitted, and provide their own estimated value of each item on the list.
One of the initial questions to consider is what assets and debt are in the marital estate. The marital estate consists of those assets and debts that (insert case law definition). There are circumstances where funds must be traced back in an attempt to demonstrate that a portion of an asset is premarital, and therefore should be considered ‘non-marital’ and set over to one party, with the balance of the asset divided. As an example, suppose that one spouse had the sum of $20,000 prior to the marriage in a savings account, and that $20,000 was used as the down payment on a residence that they purchased during the marriage. An appraisal of the marital residence determines the home has a fair market value of $100,000, and the home has a mortgage balance of $50,000, leaving $50,000 in equity for that property. The original $20,000 would be considered ‘non-marital’ and would be awarded to the person who brought that $20,000 into the marriage for the mortgage down payment. That would leave a balance of $30,000 in home equity to divide between the parties. (Although the division is often equal between parties, it does not have to be a 50/50 division The Nebraska Supreme Court has said the district court has discretion to award any amount between thirty and fifty percent of the marital estate.) Any information relating to inheritances, assets or funds that one party had at the time of the marriage, and any gifts received during the course of the marriage to one party should be discussed with your attorney at the initial conference or soon thereafter.
Valuation of assets can be a significant issue during the proceedings that may require appraisals or other research to determine its value. Depending on the parties, this can require outside assistance in valuing guns, tools, coins, stamps, baseball cards, collectible statuettes, art work, antiques, and countless other valuable items. The value of vehicles, boats, four wheelers, real estate, small businesses, farming operations, construction equipment, and a multitude of other assets may also be at issue. It is also important to consider any assets that were held by one party before the marriage, and whether some or all of the value of that asset is part of the marital estate.
Once it is determined what assets and liabilities make up the marital estate, we will develop a range of likely outcomes. We can then develop a proposal that best suits your needs. For example, it may be more advantageous for you to take less debt than assets to assist with monthly expenses. Alternatively, it may be your goal to preserve as much retirement and therefore a higher level of debt. Alternatively, it may be wise to obtain sufficient liquid proceeds to utilize as a down payment for a residence. We will help you develop your priorities and then tailor an approach to the litigation that is most likely to achieve those goals either through negotiations or if necessary a trial.
One of the initial questions to consider is what assets and debt are in the marital estate. The marital estate consists of those assets and debts that (insert case law definition). There are circumstances where funds must be traced back in an attempt to demonstrate that a portion of an asset is premarital, and therefore should be considered ‘non-marital’ and set over to one party, with the balance of the asset divided. As an example, suppose that one spouse had the sum of $20,000 prior to the marriage in a savings account, and that $20,000 was used as the down payment on a residence that they purchased during the marriage. An appraisal of the marital residence determines the home has a fair market value of $100,000, and the home has a mortgage balance of $50,000, leaving $50,000 in equity for that property. The original $20,000 would be considered ‘non-marital’ and would be awarded to the person who brought that $20,000 into the marriage for the mortgage down payment. That would leave a balance of $30,000 in home equity to divide between the parties. (Although the division is often equal between parties, it does not have to be a 50/50 division The Nebraska Supreme Court has said the district court has discretion to award any amount between thirty and fifty percent of the marital estate.) Any information relating to inheritances, assets or funds that one party had at the time of the marriage, and any gifts received during the course of the marriage to one party should be discussed with your attorney at the initial conference or soon thereafter.
Valuation of assets can be a significant issue during the proceedings that may require appraisals or other research to determine its value. Depending on the parties, this can require outside assistance in valuing guns, tools, coins, stamps, baseball cards, collectible statuettes, art work, antiques, and countless other valuable items. The value of vehicles, boats, four wheelers, real estate, small businesses, farming operations, construction equipment, and a multitude of other assets may also be at issue. It is also important to consider any assets that were held by one party before the marriage, and whether some or all of the value of that asset is part of the marital estate.
Once it is determined what assets and liabilities make up the marital estate, we will develop a range of likely outcomes. We can then develop a proposal that best suits your needs. For example, it may be more advantageous for you to take less debt than assets to assist with monthly expenses. Alternatively, it may be your goal to preserve as much retirement and therefore a higher level of debt. Alternatively, it may be wise to obtain sufficient liquid proceeds to utilize as a down payment for a residence. We will help you develop your priorities and then tailor an approach to the litigation that is most likely to achieve those goals either through negotiations or if necessary a trial.
