State laws can differ significantly when it comes to dividing property during divorce. This is why it is important to pay attention to the laws that specifically apply to Missouri if you are planning to divorce in the state.
Posts tagged "Property Division"
In Missouri, assets divided during a divorce are subject to equitable distribution. This means that marital assets will not be automatically split 50-50 in the event of a divorce. If spouses cannot come to an agreement as to how assets should be split, the decision will be the responsibility of the courts.
When you go through a divorce in any state in the United States, you will need to go through the process of asset division. This means that you will have to categorize all assets as either marital property or non-marital property. Non-marital property refers to any type of property that was either acquired before the marriage took place, that was a gift or was a form of inheritance. Marital property will count as any property that was jointly acquired during the length of the marriage.
Missouri residents who are getting a divorce may be concerned about whether they will be able to retain certain assets that they own individually. One type of assets, inherited individual retirement accounts, are being divided in divorces. Because the pretax funds may be used to offset the cancellation of the alimony deduction that becomes effective in 2019, IRAs may begin to have a more significant role in divorce settlements. The inherited IRAs are split during a divorce in situations in which the spouse that inherited an IRA wants to use a portion of the funds to fulfill an agreement made regarding the division of property.
As anyone who's been divorced in Missouri will testify, the entire process can be very emotionally draining for all concerned parties. Should there be a valuable asset such as a business that needs to be split, things can get even worse, especially if both individuals were involved in growing the business. According to the amount of effort and money invested into the business, the whole process can become quite personal to either party, eradicating any sense of objectivity they might need to negotiate fairly. Moreover, the possibility of one individual trying to defraud the other person by devaluing the company on the books or hiding debts can make matters tense.
When people in Missouri get a divorce, the process might become more complicated if one owns a startup company. According to some attorneys, the divorces of tech startup entrepreneurs have displaced those of doctors and lawyers in creating complex high-asset divorces.
When couples get divorced in Missouri, part of the separation process involves dividing up any property has been acquired during the marriage. In cases where spouses cannot reach an agreement, a judge may be asked to decide how marital property should be split. When the marital assets include valuable works of art, property division can be quite tricky.