Many people spend great amounts of time planning for their wedding. Making sure even the smallest details are addressed is time consuming. Since for many this is the biggest event of their life that is not surprising. What may be surprising to readers is that for the best possible outcome in a divorce, it is usually beneficial to put a great amount of planning into it as well. Because according to the National Center for Health Statistics, throughout the nation, approximately 40 percent of all marriages end in divorce, this is something people should be aware of.
When it comes to entering into a prenuptial agreement there are many reasons why someone might hesitate. For some, the knowledge that it most likely would be challenged should a divorce occur is one of those reasons. Individuals leaning away from entering into a prenuptial agreement for that reason may want to reconsider. This is because while prenups may be challenged on a fairly regular basis, due in large part to the Uniform Prenuptial Agreement Act, the success rate for those challenges is fairly low.
For most people the decision to divorce is not one that is made overnight. It usually follows months, and maybe even years, of trying to make the relationship with one’s spouse work, sometimes even leading to a separation. During that period of time while working for the best, it may be a good idea to at the same time, plan for the worst.
For many who are divorcing the most important matter to be addressed is the way in which the assets of the marriage will be distributed. Because of this, during a separation it is important to gather information regarding exactly what your family’s assets are. Depending on the circumstances this may not be as easy as one might assume. For example, a spouse might try to hide assets in anticipation of the marriage ending. In situations such as these working with a forensic accountant can be beneficial.
When couples are in love and looking to the future it is easy to focus only on living happily ever after. As all too many individuals who reside in the Houston, Texas, area are aware however, things do not always work this way. Not all marriages make it and people are left to address various issues in the course of a divorce. In many cases the division of assets and debts is the most contentious part.
The complexity of a divorce will vary from couple to couple. A factor that could make it more complicated is when a business is involved. If in the state of Texas, if that business is deemed to be marital property, it will be added to the assets set to be divided. This will likely require a valuation of the business.
In addition to a business’ tangible assets, its goodwill will also need to be valued. Essentially the value of the business once the tangible assets have been extracted, in many situations the courts in Texas will divide this goodwill into two parts. The first is personal good will and the other enterprise goodwill. Generally, enterprise goodwill is something that can be sold and is separate from the owner of the business.
Contrary to what some people believe not all divorces are overly contentious battles where the main object of each side is to make things as difficult as possible for the other. For couples interested in ending their marriage in a less stressful way, without going to court, collaborative divorce may be a good fit.
There are other benefits to collaborative divorce besides a reduction in stress. Some people are interesting in this process because it usually take less time from start to finish and is less expensive than divorcing the traditional way. It also allows couples to be creative in the settlement agreement they reach.
The first thing that likely comes to mind for many individuals who are divorcing is the division of assets. In particular, how much cash each individual walks away from the split with. While there are situations in which the amount of cash or physical assets someone ends up with is indicative of a good settlement, this is not always the case.
One situation, in which someone may think that he or she is getting a good settlement but in reality is not, is when a person insists on keeping the family home. While this may fulfill an emotional need, in the long-term it could be devastating financially as for some, mortgage payments and expenses related to its upkeep could be hard to stay on top of. The same can be said of other physical assets which may be worth a lot both sentimentally as well as monetarily, but do nothing to help produce income and are difficult to sell.
Divorce can be a traumatizing event that may lead some individuals to forego the union of marriage in the future. Some people move beyond that however and after meeting the right person, decide to remarry. After experiencing the difficulties surrounding divorce firsthand, it is possible that they will take steps to protect themselves should another divorce occur. This may be accomplished at least in part, through the use of a prenuptial agreement.
For most Houston, Texas, area divorcing couples the division of assets is one of the most important matters to address. It isn’t only assets that need to be split however. Debt acquired during the course of the marriage must be addressed as well.
In most cases divorcing couples want to distance themselves as much as possible from their estranged spouse. Accordingly, it is always best to try to pay off any debt accrued on a joint account before filing for, or in the course of, a divorce. This may be accomplished using the proceeds from the sale of a house or from savings accounts.
All individuals reading this post are likely aware that the legal process of ending a marriage is a divorce. When it comes to how this process will occur however, depends on the couple and their goals. While there are some divorcing couples who focus only on getting the best possible settlement, others are more concerned with making the process as good as possible for all parties involved, particularly children if they are a part of the equation. For these individuals, collaborative divorce may be worth exploring.