Divorce Mediation Session:
Property Division (Asset Division) and Debt Division
In divorce mediation, one of the major objectives is to divide the property (assets) of a marriage, as well as its debts. Dividing assets and debts is not as difficult as it sounds, because Matthew will streamline the process with financial software and his years of practical experience doing what works for families in circumstances probably similar to yours.
When you come to your first divorce mediation session after your consultation, you will have provided financial information to Matthew. To get started on your data compilation, you should consider locating statements for all of your bank accounts, investment accounts, retirement accounts, credit cards, mortgages, lines of credit, and other personal loans. You do not need to submit statements or any kind of complex documentation to Matthew. Please just bring the statement of the current value or balance, and we will enter that figure into the software used to calculate the property division.
At your mediation session dedicated to the division of property and debts, we will discuss whether all of your property was acquired during your marriage, or whether any of it should be segregated as one person's separate property. You have considerable flexibility in your division of property. You are not required to divide your property and debts in any particular way; Oregon is what is known as an equitable distribution state. Matthew will explain more about the difference between an equitable distribution state (Oregon and 40 other states) and a community property state (nine states, including California, Washington, Idaho, and Nevada.
At the divorce mediation session for asset division, Matthew will also review the tax consequences of your property division. In most cases, transferring an asset from one spouse to the other upon a divorce will not incur any tax liability, even if it is a retirement account originally created in one spouse's sole name. For any transfers that do have a tax liability attached to them, Matthew can offer suggestions as to how to structure the timing of the transfer to minimize or eliminate the impact of taxes.
Also, if you received any property via an inheritance and are disputing whether it should be classified as marital property or separate property, Matthew will discuss your options and the factors to consider. In divorce mediation, you have several options for dividing or segregating the inheritance.
As part of the divorce mediation session dedicated to property division (asset division) and debt division, Matthew will also review all of your debts with you, particularly any debts incurred jointly with the other spouse. There are special considerations to keep in mind when deciding how to divide the responsibility for the debts of the marriage. Matthew will share with you some steps to take to minimize the likelihood of any surprises in the future. He will also explain the way that a divorce is treated by existing creditors.
With regard to household goods, it is usually not necessary to itemize your household goods and their values. For most people, household goods are not worth much, because they depreciate significantly after they are purchased. Most divorcing couples find that it is just easier to divide the household goods on their own, so that by the time of the divorce, each spouse can state that he or she is keeping what is in each spouse's own possession at that time. Matthew can also address practical concerns about how to store an item that one spouse will eventually retain but has nowhere to put now (such as during a transition from a temporary home during separation to a permanent post-divorce home).
When you come to your first divorce mediation session after your consultation, you will have provided financial information to Matthew. To get started on your data compilation, you should consider locating statements for all of your bank accounts, investment accounts, retirement accounts, credit cards, mortgages, lines of credit, and other personal loans. You do not need to submit statements or any kind of complex documentation to Matthew. Please just bring the statement of the current value or balance, and we will enter that figure into the software used to calculate the property division.
At your mediation session dedicated to the division of property and debts, we will discuss whether all of your property was acquired during your marriage, or whether any of it should be segregated as one person's separate property. You have considerable flexibility in your division of property. You are not required to divide your property and debts in any particular way; Oregon is what is known as an equitable distribution state. Matthew will explain more about the difference between an equitable distribution state (Oregon and 40 other states) and a community property state (nine states, including California, Washington, Idaho, and Nevada.
At the divorce mediation session for asset division, Matthew will also review the tax consequences of your property division. In most cases, transferring an asset from one spouse to the other upon a divorce will not incur any tax liability, even if it is a retirement account originally created in one spouse's sole name. For any transfers that do have a tax liability attached to them, Matthew can offer suggestions as to how to structure the timing of the transfer to minimize or eliminate the impact of taxes.
Also, if you received any property via an inheritance and are disputing whether it should be classified as marital property or separate property, Matthew will discuss your options and the factors to consider. In divorce mediation, you have several options for dividing or segregating the inheritance.
As part of the divorce mediation session dedicated to property division (asset division) and debt division, Matthew will also review all of your debts with you, particularly any debts incurred jointly with the other spouse. There are special considerations to keep in mind when deciding how to divide the responsibility for the debts of the marriage. Matthew will share with you some steps to take to minimize the likelihood of any surprises in the future. He will also explain the way that a divorce is treated by existing creditors.
With regard to household goods, it is usually not necessary to itemize your household goods and their values. For most people, household goods are not worth much, because they depreciate significantly after they are purchased. Most divorcing couples find that it is just easier to divide the household goods on their own, so that by the time of the divorce, each spouse can state that he or she is keeping what is in each spouse's own possession at that time. Matthew can also address practical concerns about how to store an item that one spouse will eventually retain but has nowhere to put now (such as during a transition from a temporary home during separation to a permanent post-divorce home).