the court adopts a definite guideline in the property settlement in a divorce proceeding.
Divorce is a very complicated procedure for all family and its members. It touches takes a toll in the emotional and financial capacity of its members. It also changes the relationship of all the family members with one another and on how they interact with each other.
While there are several aspects in a Divorce that is best dealt with care and prudence, property settlement must be dealt with objectively and viewed as a business proposition.
Property Settlement will determine the support for the child, finances for the family members and their overall subsistence. As such, the separating couple must always take into account on what will be the best interest of all the parties involved. If they fail to reach an amicable settlement, the Court may intervene and decide for the parties on what is the best way to settle their property.
In order to arrive at a just decision in settling the property division between the parties, the Court needs to adopt a profound guideline that will serve as the foundation in their assessment and resolution of the case. This guideline can also be used in the out of court settlement of the parties.
1.The parties must identify the existing assets and liabilities of their family asset pool.
It should be an exhaustive list which includes all the properties, real or personal, business interest, investment and any other asset of the family. Liabilities such as mortgages, loans, and debts should also be included in the list in order to determine the overall value of the asset of the family.
2.The second thing to consider is the contribution made by the members of the family to the existing asset pool.
This can either take a form of financial and non-financial contribution. The financial contribution includes the salary and wages that they receive and contribute to defray the cost of living. It also includes those windmill assets which can be winnings to a lottery and inheritance.
Non-Financial Contribution includes the parenting duties rendered by a spouse in bringing up and rearing their child. Household duty is also another form of non-financial contribution including the house repairs and other renovation that is done to the house.
3.Assessment of future needs is the third step in the guideline.
The parties must identify their needs for future subsistence which is determined by their respective:
a.Age and health condition – aged couples will need more financial support as well as those who have a medical condition;
b.Earning capability of the party – another important thing to be considered is the capability of a party to earn his living. Those who do not have an opportunity to pay for their own will need more support;
c.Whether a party will have child custody and take care of their young children – spouses who have child custody and are willing to take care of their young children are entitled to more financial support considering that they will take care of their child’s rearing and growth;
d.Duration of marriage – some considers that spouses are entitled to more benefits in long marriages compared to those who were only married for a couple of years; and
e.Other consideration – this may include the damages and/or injury suffered by a party due to the domestic violence employed by the other party. The court grants additional compensation for those who are victims of domestic violence in the settlement of their property arrangement.
4.Finally, the Court will decide if the proposed division of the property is done in a just and equitable manner.
The court will weigh each consideration offered by both parties and correlate them with their own findings in order to arrive at a reasonable decision in order to protect the best interest of all the members of the family.
Disclaimer : This article provides basic information only and is not a substitute for a professional or legal advice. It is prudent to obtain legal advice from a family lawyer.