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How are assets and divorce matters intertwined?

On Behalf of | Jan 19, 2023 | Divorce

Many people dread the asset division part of divorce more than almost any other part, and for good reason. It is a sometimes complicated and highly stressful part of the process, after all.

But what about assets intertwine them so fully within divorce matters? How do assets impact divorce on a whole?

Community vs. separate property

As Business Insider points out, divorce often depends on matters of assets. Many marriages actually end because a couple is not financially compatible, or because of financial issues in general. In particular, debt and troubles with a partner’s spending habits make up for a large part of marriage-ending arguments.

Asset division also revolves around the amount of assets a couple has and where those assets fall. Some assets count as community property, which both members of the marriage share. Other assets count as separate property, which typically belong to each individual and does not get involved in the division process.

Exceptions exist where a once-separate asset may become a community asset due to how the individual handled it. For example, putting money into a joint account makes it community property even if one party owned it before the marriage.

What causes arguments

Because of the high risk of losing many assets in divorce, having higher assets can even equate to a more volatile divorce with more arguments. However, studies show that couples with a net worth of over $5 million fight less and have more amiable divorces. This indicates that how couples feel about their assets might matter more than the actual asset amount.