Divorce is the legal process of separating the lives of spouses who have combined their lives. They have to divide their property and also their financial obligations. Unless they already signed a marital agreement discussing asset distribution, spouses have to settle matters when they file or prepare to litigate.
Frequently, spouses preparing for property division during a divorce focus primarily on high-value assets. They worry about protecting real property, motor vehicles, businesses or retirement accounts. It is obviously important to ensure that spouses have a realistic understanding of what their most valuable shared resources are worth and to negotiate a fair way to address those assets. However, many people make the mistake of overlooking personal property during divorce negotiations. They may deprive themselves of a fair share in the marital estate by doing so.
Personal property can be quite valuable
Clothing, jewelry, art, and other assets may seem like they belong directly to one spouse. Contrary to what people sometimes assume, personal property is not necessarily the separate property of either spouse. Any assets acquired during the marriage with marital income are technically part of the marital estate.
That is as true of one spouse’s wristwatch collection or vintage furniture as it is of vehicles and real property. Personal property includes everything from the contents of a wine cellar to the imported culinary equipment in the kitchen. Personal wardrobes, fine art collections and hobby equipment can also all constitute personal property.
While one spouse may not want to actually keep the personal property of the other spouse, they need to know what it is worth. A 3D printer could be worth thousands, and the same might be true of vintage designer clothing items. Those putting together a comprehensive inventory of marital assets typically need to consider personal property in addition to higher-ticket items. The process of identifying and valuing each spouse’s personal property can give a spouse leverage during asset division negotiations.
Pushing for a fair outcome is crucial to the future financial stability of those navigating a pending divorce. Personal property can play a significant role in the overall asset division process. Spouses who account for all assets accumulated during their marriage can push for the most reasonable property division terms possible.