Divorce can be complicated, especially when it comes to dividing assets like investment properties. In Connecticut, courts aim to split property in a way that is fair to both spouses. Understanding how this process works can help you know what to expect.
Equitable distribution of assets
Connecticut follows the principle of equitable distribution. This means the court divides marital property fairly, but not always equally. The goal is to reach a just outcome based on each person’s situation.
Identifying marital vs. separate property
First, the court decides which properties are marital and which are separate. Marital property includes assets acquired during the marriage. Separate property consists of assets owned before the marriage or received as gifts or inheritance. Investment properties bought while married are usually considered marital property.
Factors the court considers
When dividing investment properties, the court looks at several factors:
- Length of the marriage: Longer marriages might lead to a more equal split.
- Contributions to the marriage: This includes income earned and work done at home.
- Age and health: The court considers each person’s physical and emotional condition.
- Employment and income: Current jobs and future earning potential are important.
- Needs of each spouse: This includes financial needs and responsibilities.
In some cases, the courts may also consider the cause of the divorce, because the reasons for the divorce might affect the division.
Valuing the investment properties
The court needs to know how much the investment properties are worth. This usually involves getting appraisals to determine their fair market value. Accurate valuations are important for a fair division.
Methods of division
There are different ways the court might divide investment properties:
- One spouse keeps the property: One person may be awarded full ownership, possibly by buying out the other’s share.
- Selling the property: The property can be sold, and the money divided between both spouses.
- Co-ownership: Both parties may continue to own the property together, sharing any profits or losses.
Reaching an agreement
If both spouses agree on how to divide the investment properties, they can create a settlement agreement. This can make the process quicker and less stressful. The court will review the agreement to ensure it’s fair.
Knowing how the distribution process works can help you navigate it more confidently. Remember, understanding your options is key to finding a fair solution during a difficult time.