A divorce process is not something that can be done in one day. The duration of the case will vary depending on a number of factors, one of the most significant being the couple’s assets. The more valuables and properties they have in their names, the longer it will take for the case to be finalized.
When it comes to dividing accounts and assets, many people raise a question of when the court will finally get to the task. It is the court’s duty to determine the date and time when the parties will be able to set the value of their property, retirement savings, and any other accounts accumulated during their marriage. Here is how the court will determine the date on which to value a couple’s properties and accounts:
The court has to consider when the couple separated
If the divorce case is simple, there shouldn’t be very many difficulties in setting the date of valuation. That being said, there are often many other factors that can create complications in the case. Some couples actually separate before they file for divorce. If you fall into this category, the court needs to make a decision whether should they choose the date of separation, the date that the couple filed for a divorce, or the date of trial start day. This is the consideration of the court, and you cannot do anything about it. In the case that the couple drifted apart for years but there was an increase in property value and/or bank accounts of one person, the process can be even more complicated, especially if there is no prior filing for a divorce. The issue is actually similar to when there is a fluctuation in the value of the properties while the case is still ongoing.
The court has to consider the state law
Each state has different rules to use when dealing with divorce cases and determining the date of valuation. In Michigan, the date on which a court will value the couple’s assets and accounts will depend on the judge. The couple will not have anything to do with the judge’s decision. The significant factor that will be put into consideration for the marital estate is the intent that leads to separation, for example, filing for a divorce case or living in separate houses. Nevertheless, even though there is a manifestation of intent, the property that each party earned after that can still be considered as a marital asset because the divorce was still not finalized. To put it simply, this means that both parties might end up having to split the value of the properties in half regardless of the fact that they acquired them after their separation. Moreover, if there is an increase in the value of the assets, they will have to split the current value in half.
When there is an actual complicated divorce case, all courts are likely to use the date that is the closest to the end of the divorce. The reason for this is while the couple is still waiting to file for divorce, they are still considered to be married. Whatever asset or money that is obtained during the ongoing case will have to be shared between the two parties accordingly.
If you’re looking for a divorce attorney in Genesee County, we are here to help. Get in touch today for a free consultation.