Getting a divorce is rarely an easy or simple process. If you have chosen to separate from your spouse, you will need to address multiple types of financial issues while also making sure to follow the correct legal procedures to terminate your marriage. Many of these financial concerns will be related to the property you own, and in your divorce settlement, you will need to determine how your community property will be divided between you and your spouse. As you address these issues, some of the most significant concerns will be related to your family home. Determining whether you will be able to continue owning your home or whether it may be necessary to sell the home during your divorce is not always easy, but with the help of a skilled divorce attorney, you can decide on the best route to take that will protect your financial interests in the years to come.

Is the Home Community Property or Separate Property?

The first issue related to your home that you will need to address is to understand whether it is community property owned together with your spouse or separate property owned solely by one party. Community property consists of all assets that were acquired during your marriage. If you and your spouse bought your home together at any time after you became legally married, it will be community property. Regardless of how the purchase was made, whose name is on the title, and who contributed to mortgage payments, a home that is community property will be considered to be jointly owned by you and your spouse.

On the other hand, if you owned a home before you got married, it will usually be considered separate property rather than community property. You will most likely be able to retain sole ownership of your home after your divorce. However, you may need to address increases in the value of your equity in the home during your marriage. If marital funds were used to make mortgage payments, or if your spouse contributed to an increase in the value of the home by performing repairs or improvements, you may be required to repay them for these contributions.

Retirement accounts and pensions are often among the largest assets in a married couple’s estate. When a couple decides to get a divorce, these assets must be divided between the spouses alongside multiple other types of marital property. It is important to understand the issues that will need to be considered when dividing retirement benefits. This can ensure that the financial interests of both spouses will be protected, and it can help them make informed decisions about their future.

Options for Dividing Retirement Accounts and Pensions

Retirement savings accounts, including 401Ks or IRAs, usually consist of money that is deducted from a person's income and invested in financial funds. These accounts will grow over time, providing the account holder with income they can use to meet their needs after their retirement. Pension benefits are similar, although they usually will not require deductions from a person's income. Instead, they will consist of ongoing benefits that will be paid from a pension fund after retirement.