What steps do the courts take in dividing property?
In dividing property, the courts do a five step calculation:
Step 1. Calculate the net value of a spouse’s property as of the date of marriage: Add up the value of the spouse’s assets at the date of marriage and subtract that spouse’s debts as of the date of marriage.
Step 2. Calculate the net value of the spouse’s property as of the “valuation date”: Add up the value of the spouse’s assets as of the date of separation and subtract that spouse’s debts as of that date.
Step 3. Subtract the marriage date net worth (Step 1) from the valuation date net worth (Step 2). The result will be the spouse’s Net Family Property, net worth increase during the marriage.
Step 4. Conduct the same calculation for the other spouse.
Step 5. The spouse with the higher Net Family Property owes the other spouse the amount that equalizes the two.