Nevada's Community Property Laws
Nevada adheres to community property principles when dividing assets during a divorce. This means that all property acquired by either spouse during the marriage is considered jointly owned and is subject to equal division upon divorce.
Community property typically includes:
- Income
- Real estate
- Investments
- Retirement accounts
- Other assets accumulated during the marriage
Equal Split vs. Equitable Division
When the courts litigate property division in Nevada, they generally mandate an equal split between spouses. This means that each spouse is entitled to 50% of the marital assets, regardless of individual contributions or circumstances. The goal of this method is to ensure a fair and impartial distribution of assets based on the principle of equality.
On the other hand, spouses also have the option to negotiate their own division. In this instance, they can work together to create a property settlement agreement that considers various factors beyond a strict 50/50 split. This approach allows for flexibility in addressing unique circumstances, such as differences in earning capacity, financial contributions, and future needs of each spouse.
Negotiating Equitable Property Division
Couples should consider a variety of strategies when approaching property division negotiations. Working with legal counsel, or in some cases, a mediator, the negotiation process will allow them to find solutions that consider their unique circumstances. This is often preferable to allowing the courts to decide for them.
Examples of property division strategies can include:
- Offsetting assets and debts: A couple may agree to offset shared debts against their assets. For instance, if one spouse is awarded the family home valued at $300,000, they may also assume the mortgage debt of $200,000. The other spouse might then receive a higher proportion of other assets, such as a retirement account or investments, to balance the division.
- Spousal support and future earning capacity: If one spouse has a significantly higher earning potential due to their career, the other spouse might negotiate for a larger share of the marital assets, such as investment accounts, while agreeing to a shorter duration of spousal support. This recognizes the financial disparity and provides a cushion for the lower-earning spouse.
- Non-monetary contributions: In cases where one spouse has primarily managed the household or taken care of children, they may advocate for an equitable division by negotiating for a greater share of the couple’s assets, which can include savings accounts or real estate, as compensation for their contributions that may not be financially quantifiable.
- Phased asset distribution: Couples might agree on a phased approach to asset distribution, where they retain joint ownership of certain assets with shared future benefits, such as business investments. For example, they can agree to split profits, or neither spouse can sell their stake until both decide it is appropriate.
These options can empower couples to create a more tailored divorce settlement and accommodate each spouse's contributions and needs.
The Importance of Legal Counsel in Asset Division
Regardless of the approach taken for asset division, having dedicated legal counsel can make a significant difference in how your divorce progresses. Experienced lawyers like ours can provide invaluable guidance, helping you understand your options in the context of Nevada laws.
If you are going through a divorce and would like to discuss your property division options, reach out to Ford & Friedman. Our attorneys are well-versed in all aspects of divorce law, and we are prepared to help.