In divorce proceedings must be owned by the spouse in possession of classified and are divided among themselves. Among the factors that are currently in possession of certain items, how should the couple split the state of residence, the location of the property, and where, when and how and where the assets acquired. State laws vary in the definition of marital property. In general, the property includes all civil assets acquired during marriage, the spouse, with the exception of real estateAcquisition by inheritance or donation. Separate property is owned by each spouse acquired before marriage by gift or inheritance during marriage and after separation. Most states assume that the property acquired during marriage are marital status. It may be necessary for one spouse to the origins of the funds used to purchase property in order to prove that the property to separate track.
Property divisions are based on the concept of equitable distribution. This concept states thateach spouse has a legal right against earnings during marriage and the other spouse has acquired the assets of these results. Consequently, the courts must perform three tasks:
(1) Clarification of all activities both as a double or twin
(2) Value of goods and
(3) distribute the goods to be distributed more fairly.
Courts will examine the length and quality of marriage, marital failure, monetary compensation and monetary contributions to the marriage, earning capacity of each spouse, each separate propertySpouses, their age and health, childcare and other factors. For the physical inability of some shared items, such as the marital home or a business trip, is assigned to the spouse and other goods in exchange for the property must be sold in order to facilitate a fair distribution. Sometimes you need to trace separate property if, for example, was used to purchase other goods, was mixed with marital assets or their valuehas increased significantly.
For the purposes of income tax, a transfer of property from a spouse, '"incident to divorce" the other is free. This means that no gain is recognized by the transferor spouse. These include the sale or exchange of property between former spouse within one year after the marriage and the transfer following a divorce or separation agreement is usually within six years after marriage. Such transfers are treated as a giftIncome tax purposes. The seller, the tax base and holding period carry over to the taxable income or loss from the difference between the tax base received from the seller and the selling price. For this reason, a spouse who is offered a particular asset in a divorce settlement, the estimate of taxable income to determine its possible sale, in order to arrive at an after-tax value of the property. All significant assets should be divided will be assessed in this manner, a productionequitable distribution of assets, net of taxes.
