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How Asset Division May Play Out
When a couple decides to get divorced in Nevada, one of the first things they need to do is figure out how their property will be divided. This can be a difficult process, especially if the couple has a large amount of assets.
In this blog post, we will discuss how property is typically divided in a Nevada divorce. Keep in mind that each case is unique and may not follow these general rules.
Community Property Laws
In the state of Nevada, all property and assets acquired during a marriage are considered community property and will be divided evenly in the event of a divorce. This includes income, savings, homes, cars, investments, and any other jointly-owned assets. Debts incurred during the marriage are also considered community property and will be divided equally between spouses.
There are a few exceptions to Nevada's community property laws. Gifts and inheritances received by one spouse during the marriage are considered separate property and will not be divided in a divorce. Property that is purchased with separate property funds (such as an inheritance) is also considered separate property. Lastly, any debt incurred before the marriage or after the date of separation is also considered separate property.
When Property Becomes Commingled
In a community property state like Nevada, divorcing couples are tasked with dividing all of the assets and debts they acquired during the marriage. This can be a complicated process, especially when it comes to determining which items are considered community property and which are separate.
One complicating factor is commingled property. This occurs when an asset or debt that was originally considered separate becomes mixed up with community property.
For example, let's say one spouse has a savings account that was opened before the marriage. Over the years, they deposit both their own earnings as well as earnings from their joint household into this account. Now, the account contains both separate and community funds.
To figure out how to divide commingled property in a divorce, you'll need to determine the percentage of community and separate funds that are contained within it. For example, if the savings account mentioned above contains $50,000 and half of that is from the spouse's earnings during the marriage, then $25,000 would be considered community property. The other $25,000 would be considered separate.
Once you've determined the percentage of community and separate funds in an asset or debt, you can divide it accordingly. In some cases, one spouse may be awarded the entire asset or debt because it consists mostly of their own separate funds. However, if the commingled property contains a close mix of both types of funds, then you'll need to figure out how to divide it fairly between the two spouses.
Negotiating a Settlement
If you and your spouse are able to come to an agreement about how to divide your property, you can negotiate a settlement. This means that you will work together to come up with an arrangement that is fair to both of you. You can either do this on your own or with the help of a mediator.
If you are unable to come to an agreement, the court will make a decision for you. The court will look at a number of factors when making its decision, including:
each spouse's financial needs
each spouse's earning capacity
the length of the marriage
the contribution of each spouse to the marriage (including homemaking and childrearing)
whether one spouse helped the other spouse get an education, training, or job
the value of the property
the income of each spouse
each spouse's age and health
any other factors that the court considers to be relevant
If you have questions about how property is divided in a Nevada divorce, you should speak with an experienced family law attorney.
The Need for Experience
An attorney can help you understand your rights and options under Nevada law. Contact the team at Ford & Friedman today to schedule a consultation with one of our knowledgeable attorneys. We can help you protect your interests and reach a fair settlement in your divorce.
Call us at (702) 904-9898 or visit us online to get started today.