Methods of Division by the Court

Generally, the courts have broad discretion to determine the manner and division in order to accomplish a net equal division. The court normally adopts one of the following approaches:

1. In Kind Division – where the court divides fungible assets such as bank accounts, shares of stock, etc in kind, where each spouse is awarded one half.
2. Asset Distribution or Cash Out Division - the court can distribute one or more items to one spouse and items of equal value to the other spouse. This method can be time consuming since it requires the court to determine the value of the assets and debts in order to accomplish a net equal division.
3. Sale and Division of the Proceeds - the court can order that an asset be sold, with the proceeds divided in proportion necessary to effect a net overall community estate. This is often the most practical and lest expensive way of dividing the assets that are difficult to value. However, it would be an abuse of discretion by the court to order that the family business by sold where both parties are capable of operating it and each wants the business.
4. Deferred Partition by Conversion to Tenancy in Common - The court can award each spouse an undivided one half interest in certain items to hold as tenants in common deferring the division until it is feasible to sell and divide the proceeds. This is most applicable to the division of a home.

Division of community assets and debts is critical and complex. Therefore, it is very important that you seek the legal advice and expertise of an experienced family law attorney. At Wallin & Klarich, our attorneys have been in practice for over 30 years and will diligently represent your interests to the fullest extent possible. Call us today at 888-749-7428. We will be there for you when you call.