How Can Divorce Mediation Be Used to Resolve Property Division Issues?

 Posted on November 09, 2021 in Property Division

Ending your marriage will require you and your spouse to make many decisions about how you will separate your lives from each other. Since you have most likely accumulated multiple different types of property during your marriage, determining how to divide your money and assets may be a complicated matter. Fortunately, divorce mediation can be a beneficial way to reach agreements on these issues and create a settlement that will provide each of you with the financial resources you need.

Addressing Multiple Types of Marital Property During Divorce Mediation

Recently, we looked at some issues that you may need to address when dividing valuable assets such as your home or a family business. In addition to those forms of property, you will also need to make decisions about other assets you own, including:

• Financial funds and investments - If you have money in bank accounts, or if you own stocks or other investment assets, you may agree to divide these assets equally between you and your spouse. However, you may also agree that one spouse will keep a larger portion of these funds, while the other spouse will keep other marital assets that are around the same value. Your mediator can help you make decisions about how to divide financial assets fairly.
• Retirement accounts or pensions - If either spouse has retirement savings in a 401(k) account or IRA, the funds in these accounts may be divided between the two of you. Pension benefits earned by a spouse during your marriage may also need to be divided based on how long you were married while these benefits were being earned. A mediator can explain the issues that will need to be addressed when dividing these types of assets, including how you may use qualified domestic relations orders (QDROs) to withdraw funds before reaching retirement age without being subject to penalties or taxes.
• Vehicles - While you and your spouse may each retain ownership of your primary vehicles, you may need to address any differences in the value of these vehicles. For example, if your spouse’s vehicle is paid off, but you still need to make several years’ worth of payments on the loan for your vehicle, you may be able to negotiate a settlement in which you will receive enough funds to pay off your loan.
• Household items - There are multiple pieces of property in your home that will need to be divided, including furniture, kitchen utensils, household appliances, decorations, artwork, or collectibles. With the help of a mediator, you can reach agreements that will allow both you and your spouse to keep items that are important to you, while also ensuring that you will have what you need as you establish new living arrangements.
• Debts - In addition to assets, you will also need to determine who will be responsible for paying the debts that are owed by you and your spouse. You will both be responsible for paying any joint debts, such as credit card balances. Your mediator may help you make arrangements to pay off as much of your debts as possible during your divorce to ensure that you will both be on sound financial footing as you begin the next phase of your lives.

Contact Us for Plano Divorce Settlement Mediation Services

During your divorce, our experienced mediators can help you and your spouse work together to reach agreements on how you will divide the property you own. With our help, you can create a divorce settlement that will provide for your needs going forward. Contact our Collin County divorce mediators today at 469-406-4320 to schedule a complimentary consultation.

Source:

https://statutes.capitol.texas.gov/Docs/FA/htm/FA.7.htm