What is an equitable distribution of assets?

Equitable distribution of assets is a legal process used to fairly divide the assets of a married couple in a Delaware divorce. This process works to divide the assets equitably (fairly) rather than equally. This means that each spouse is entitled to take an amount of assets that is proportional to the amount of assets they owned during the marriage, regardless of who earned the money. In Delaware, assets are divided under the “fair market value” standard rather than the “net value” standard. This means that when the court divides the assets, it takes into account the current market value of each item, rather than the original purchase price. This helps to ensure that each spouse is awarded an amount that reflects the amount of money they would have been able to obtain from selling those items. The court also takes into consideration any debts that exist, such as mortgages, car payments, and credit cards. Debts are divided based on each spouse’s ability to pay them. For instance, if one spouse has more money and disposable income than the other, the court may assign that spouse the responsibility of paying off the debts, rather than equally splitting them between both parties. Lastly, the court considers any pre- or post-marital assets that may be present. These assets, which are not typically divided in equitable distribution, are untouchable by either spouse. They are kept in the ownership of the spouse who originally acquired them.

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