The joining of two lives through marriage also involves the joining of the spouses’ finances. Determining how to divide marital property is often one of the key issues in a Wisconsin divorce. Disputes about property division during divorce can escalate and become contentious and complex. If you are considering divorce, it is important to know how property division is handled according to Wisconsin law.
Wisconsin Family Courts Follow “Community Property” Laws
Each state handles property division during divorce slightly differently. Wisconsin is a community property state. Property and funds accumulated during the marriage are owned by the “marital estate” and are subject to division during divorce. Spouses have an equal right to marital property in a community property state. Even if only one spouse’s name is on the title to an asset, both spouses have an equal right to that asset. It is also crucial to remember that the word “property” in this context refers to assets as well as debts.
Divorce can be challenging not only emotionally, but also financially, as couples will need to work to determine how their shared property will be distributed between the two spouses. You may go into your divorce understanding that you will need to divide your marital assets, but it is important to remember that you will also be expected to divide your debts and to prepare yourself for the impact on your personal finances. In Wisconsin, with few exceptions, assets obtained and debts incurred by either spouse during the marriage are considered shared marital property to be divided equally in a divorce.
Loans Need to Be Paid Off Regardless of Marital Status
It is not uncommon for couples to acquire a lot of property during their marriage. Likewise, they can also rack up a lot of debt due to loans for education, vacation homes, vehicles, furniture, appliances, and even electronic devices such as phones and computers. Some common marital debts that can factor into your divorce settlement or resolution include:
When you get married, you do not expect to get divorced from your spouse. However, people and circumstances can change. In some cases, the best decision for everyone in the family is for you and your spouse to end your marriage. However, divorce is a very emotionally and financially stressful event. It is no secret that getting a divorce is expensive, and it can take a huge toll on your current and future financial situation. Although it can feel like your entire life is being dismantled during your divorce, your finances do not have to suffer. Below are a few ways you can increase the chances of coming out of your divorce while maintaining financial security.
Understand Your Rights to Marital Property
One of the most important ways you can make sure you are in good financial standing after the divorce is having a complete picture of your marital finances. You can do this by making a list of what you and your spouse own in assets and property and by also making a list of what debts you both have incurred throughout the marriage. This way, you will know whether you will need to take on debts such as credit card balances, vehicle loans, or a home mortgage after the divorce. Once you know exactly what you and your spouse own in regard to marital property, you can begin to plan your asset division strategy to determine which assets are the most important to you and what you are willing to fight for. For example, you may want to stay in the marital home if you will be the custodial parent of your children.
There are many reasons why couples divorce. Maybe they realized they were better off just as friends, or perhaps someone’s needs were not being met. Whatever the circumstances, the divorce process is almost always more difficult and more complex when there are hostilities between the spouses. It is not uncommon for one spouse to have sole responsibility for the bills or finances. Divorcing with less-than-amicable feelings can sometimes cause that spouse to attempt to hide assets out of spite or anger. Not only is this untruthful, but it is also illegal and can carry some serious consequences.
Requirements for Financial Disclosure
During a divorce, Wisconsin courts require both spouses to be fully transparent about their finances. All assets owned fully or partially by the individual spouses and all assets owned jointly between the spouses must be disclosed. This includes assets such as:
Getting a divorce can be one of the best things that can happen to a person, especially when they are miserable in their marriage. Yet while a divorce can be positive, it can also be extremely time-consuming and stressful. The division of marital property is one of the more important and often contentious elements in the divorce process. Everything you and your spouse own must be allocated to one of you, depending on whether it was acquired before or after you were married. Here are a few specific assets you must allocate during your Wisconsin divorce:
The Family Home
Determining what you will do with the family residence can be difficult for a lot of people. Many have an emotional attachment to their home, especially if they have had children grow up there. If one spouse has a particular attachment to the home, that spouse could either buy out the other spouse’s portion of the home or apply for a new mortgage on the home. If neither spouse wants to keep the residence, the easiest solution is to sell the home and split the profits.
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