what are small asset pools in a property settlement division?
The net asset pool of a property has its value. The value may be high or low. If the value is very high, then the distribution does not put a huge effect on the parties as both the parties gets a high sum of money. But if the net price of the asset is not particularly high enough, then the distribution puts a huge effect on both of the parties. Because, in the small asset pools, if the distribution to one party is a bit lower then his/her future may be overshadowed. They might face financial problems later because of the decision not swinging from them. Hence, during the property settlement, the small asset pools, play a big part on both the parties resulting a dilemma in the decision.
The small asset pools are the property which are of comparatively lower value. The large asset pools have a high net-price, but this case is not in the smaller ones. As a result, the distribution, although does not make a huge significance in the future of parties with large asset pools, but the distribution among the parties with a smaller asset has an enormous significance. The court will make a decision on the property distribution by looking on to the future needs of the parties. They would look about the other factors to decide.
How are small asset pools divided during the property settlement?
The distribution of the small asset pools during the property settlement is a quite tricky one. The court faces a tough time to divide the small asset pools on the right way. To make the correct decision by looking over all the needs of the parties and their contributions to the property is a hard one. The court looks over the following factors:
The property pool: In some cases, the property pool is divided in equal ratio and distributed among the parties. The exact split of 50/50 is not always seen, but in some cases the property is directly divided overlooking the other contributions and the responsible factors. The net asset pool is counted by adding the mortgage values and some other values as well like the debts etc.
Assessing contributions: The court will look upon the financial as well as the non-financial contributions of both of the parties during the property settlement of small asset pools. This is probably the biggest factor of property settling of small asset pools as its effect is very high. The contribution of the breadwinner to property would be high, but due to the contribution of the homemaker in non-financial activities their portion would rise also.
Contrasting the contributions: The small asset pools would be distributed among both the parties simply on a level playing field. This is certainly the part where the distribution takes a twist and have a major significance. The distribution among the parties cannot be simply made on the contributions in the assets. Rather, the other activities are taken into account also.
Assessing future needs: In a property settlement case, with a small asset it is difficult to distribute so easily. The future need is taken into account and this has a higher significance. Because, to take care of the children the one who gets the custody requires some assets to handle his/her children’s education.
Suppose, Mark and Anna are a couple living together. They are married for four years and have a child named John, aged 2 and a half years. At their property settlement case, the net asset price of their property stood 60000$. Now, the contribution of Mark to the asset was much higher than that of Anna. His contribution was 90 to 10 compared to Anna. But, Anna had his role in Non-financial contributions to the property. Also, since she is a homemaker and based on a level playing field her contribution is valued more. Also, she gets to take the custody of the child as being fit enough with the child needing the affection of her mother. Thus the distribution swings to favor of Anna where the distribution was decided by the court to be 55% to Mark and 45% to Anna. Thus, in distributing this small asset pool many factors were taken into light to make the proper and justified decision.
Thus distributing the small asset pools among both the parties is a difficult decision and it is highly significant. The effect of the distribution falls on both the parties cause it affects their future as well.
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.