What Happens to Your Assets During a Divorce?
Divorce is one of life’s most emotionally and financially challenging transitions. If you’re considering divorce in New Hampshire, it’s important to understand what happens to your assets during a divorce and how the right guidance can help you make informed decisions.
While equitable does not necessarily mean equal, it is presumed initially that the division of assets between the spouses will be equal. Absent an enforceable prenuptial agreement, marital property typically includes all assets and debts acquired, even those from before the marriage, regardless of whose name is on the account, title, or deed. This can include real estate, retirement accounts, vehicles, investments, inheritances, gifts, and business interests.
The court may, but is not required to, consider certain factors to determine if an equal division is not appropriate. These factors include, but are not limited to:
- Length of the marriage;
- Parties’ ages, health, and employment;
- Ability to acquire future assets;
- The acts of one party to contribute to the growth or loss of assets;
- One party’s investment in the other’s career or education;
- Retirement benefits accrued before to marriage;
- Gifts and inheritances, and their timing;
- Whether a valid prenup allocates assets unevenly;
- Fault grounds causing the divorce and those grounds caused substantial physical or mental pain and suffering or substantial economic loss to the marital estate; and
- Other relevant factors.
Dividing property fairly requires a full financial picture. Both spouses are required to disclose all assets and liabilities. Hidden or misrepresented assets can complicate and prolong the process and may result in legal consequences.
Whether you choose a traditional divorce or a collaborative approach, it’s essential to work with attorneys who understand the nuances of New Hampshire law and your circumstances. In a traditional divorce, the court makes decisions if spouses cannot agree. In a collaborative divorce, both parties work together outside of court with the support of trained professionals to reach a mutually agreeable resolution. Collaborative divorce can reduce conflict, preserve relationships (especially important when children are involved), and often results in a quicker, more cost-effective outcome.
If you’re considering marriage, the only way to ensure your separate property remains your own is by entering into an enforceable prenuptial agreement. If you’re already married, you and your spouse may be able to enter a postnuptial agreement.
No matter the path you choose, protecting your financial future begins with good legal guidance. At Wescott Law, we are well-versed in both courtroom litigation and collaborative divorce methods, allowing us to tailor our approach to your needs. Contact us for a consultation.