Dividing assets and debts during a divorce can feel overwhelming, especially without the help of a lawyer. But the good news is that with careful planning, clear communication, and the right resources, you can do this on your own. This guide will walk you through the steps to divide your property and debts fairly and provide you with tools and resources to make the process easier.
Why Divide Assets and Debts Fairly?
When a marriage ends, splitting what you own and owe is a critical step. It’s not just about being fair—it’s about creating a foundation for your future. Both parties need to leave the marriage with clarity about who owns what and who is responsible for any debts.
Step-by-Step Guide to Dividing Assets and Debts
1. Make a List of All Assets
- What are assets? These include things like your home, cars, savings accounts, retirement accounts, jewelry, and furniture.
- How to do it: Write everything down, even the small items. Use a spreadsheet or notebook to keep track.
- Tip: Don’t forget about digital assets like cryptocurrency or online business earnings.
2. Make a List of All Debts
- What are debts? These are loans, credit card balances, mortgages, and medical bills.
- How to do it: Collect recent statements for every account and write down the current balance.
- Tip: Be honest about all debts to avoid future legal complications.
3. Determine What’s Marital and What’s Separate
- Marital Property: Belongs to both of you and was acquired during the marriage.
- Separate Property: Belongs to one person and was acquired before the marriage or through inheritance/gifts.
- Tip: Use documents like purchase receipts and account statements to clarify ownership.
4. Agree on How to Split
- Decide together how to divide assets. For example:
- Sell the house and split the money.
- One person keeps the car while the other gets an equal value from savings.
- Tip: Be flexible. Focus on what’s most important to you rather than arguing over every item.
5. Divide Debts Fairly
- Assign responsibility for each debt. For example:
- One person takes on the car loan while the other covers the credit card debt.
- Tip: Notify creditors of the changes so they know who’s responsible for payments.
6. Put Everything in Writing
- Create a simple agreement outlining how you’ve divided assets and debts.
- Tip: You can use free templates from online legal services (see resources below).
7. File the Agreement with Your Divorce Papers
- Submit the agreement to the court as part of your divorce settlement.
- Tip: Check your state’s requirements for filing these documents.
Resources to Help You Get Started
Websites
- Rocket Lawyer
- Offers DIY legal document templates and guidance for dividing assets.
- LegalZoom
- Easy-to-use tools for creating divorce agreements.
- Nolo
- Comprehensive articles and resources for self-represented divorce.
Books
- “Divorce Without Court” by Katherine Stoner
- A detailed guide to resolving issues without litigation.
- “The Complete Divorce Organizer” by Brette Sember
- Helps you keep track of important documents and decisions.
Podcasts
- The Divorce Survival Guide Podcast
- Offers practical advice for navigating divorce.
- Divorce, Simply Stated
- Simplifies the legal and emotional aspects of divorce.
Guides
- IRS Guide on Divorce and Taxes
- Helps you understand how divorce impacts taxes.
- Equitable Distribution State Guide
- Explains how property is divided in your state.
Affiliate Products
- Trust & Will
- Create affordable estate plans and trusts post-divorce.
- Affiliate Link: Use code DIVORCE10 for a 10% discount.
- Mint Budgeting App
- Manage your finances and debts effectively.
- Affiliate Link: Get a free 3-month trial.
