Showing posts with label marital property. Show all posts

If I leave the House, will I lose my Financial Interest?

In many divorce cases, the initial fight is over who will leave the house. In cases where the parties own the home, the first person to leave is often very concerned that the spouse remaining behind will have a financial advantage. While there are some potential financial advantages to the party that remains behind, in most cases they are minimal when compared to the quality of life improvement one experiences by leaving a stressful living situation.

The potential financial advantage is primarily the use of the house during the pendency of the divorce action, which may have some financial benefit depending on how the bills of the house are split during the separation. There is also the immediate expenses for moving and replacing any furniture or other necessities, but unless one party buys the other out from the house both will eventually have this cost.

There are potential problems with one party controlling the property, for instance they can make it more difficult to show to potential buyers or fail to perform necessary repairs and upkeep. If you believe these are a serious risk, you may want to agree to orders on these issues before leaving the house. A solid written agreement can prevent most of the financial problems that might arise by leaving the home before the divorce is final, or at least provide for mechanisms to compensate one party if there are issues. If you are unsure of what you should do in your situation, you should consult with an attorney to discuss the specifics of your case.

I'm Separated, Why Should I get Divorced? - Reason #1: Cutting Financial Ties

In Massachusetts, the standard for a no-fault divorce is whether or not you subjectively believe that your marriage is irretrievably broken down with no chance of reconciliation.

If you are separated but believe that there is a chance of reconciliation, then you should not get divorced (and you do not meet the legal standard to do so anyway).

However, if you are separated and you do believe that your marriage is over, then there are some compelling reasons not to wait to get divorced. This four part post will highlight the most compelling of these reasons.

Reason #1 Not to Wait: Cutting Financial Ties

So long as you are married, you have a financial link to your spouse. In Massachusetts any property that you hold either jointly or individually can be considered marital property subject to division by the family court. This means that if you acquire financial assets after your separation your spouse may have a claim to those, even if they didn't pay a dime to help you obtain those assets.

Similarly, if your spouse incurs debt after your separation, you may have some obligation to help pay that debt. This is true even if you had nothing to do with the items purchased.

The Court does not ignore the fact of your separation, and it may have a significant impact on how those post-separation assets or debts are divided. But the separation is only one factor among many that the Court must weigh. This means that until the divorce is filed, you are financially linked to your spouse whether or not you are physically separated (and whether or not you separate your finances).

Read Reason #2: The Ticking Time Bomb.

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