Division of Property Includes Both Assets and Debts
One of the most complex and contentious aspects of divorce is the division of assets and debts. At Jensen & Leiberan, we are experienced in helping clients achieve an equitable distribution of marital assets and debts.
Simple or Complex Division of Property
Whether you have a simple estate with modest assets or millions of dollars' worth of real estate, business holdings, bank accounts, stocks, stock options, inheritance, trust and complex retirement holdings and pension plans, our attorneys can help you.
We are experienced in handling complex property settlements that involve numerous business holdings. When necessary, we will work with a business attorney or business evaluation expert to determine the best way for our client to obtain his or her portion of the property without putting the business itself in jeopardy.
We are also experienced in handling cases involving division of timber assets, cattle, farms and the like. In these cases, property valuations are much more complex.
Whose Debt Is It?
Generally debt incurred during the relationship is shared equally by the parties. However, the facts in your specific case may justify an unequal distribution of the debt. When determining the debts to be assigned to the parties, a court considers several factors, including whether or not a party is receiving the asset with which the debt is associated, whether a party has wasted significant assets during the marriage, when the debt was incurred, the reason for the debt and the ability of a party to pay the debt.
Who Owns the Assets?
In general, most assets acquired during the marriage are marital assets unless there is proof that the assets were acquired with no contribution (financial or otherwise) by the other party. One exception is that assets received through gift or inheritance during the marriage will likely not be considered marital assets under Oregon law if these assets have been separately held by the party who received the gift or inheritance. Depending on the length of the marriage and the amount of commingling of the parties' assets, even property owned solely by one of the parties prior to the marriage may be subject to division in a divorce. The typical standard is equal division of all assets, but courts can make an unequal division if the judge finds that this is more equitable based on the facts of your case.
Tax Consequences of Divorce and Property Division
Ordinarily the distribution of property between divorcing spouses does not result in taxable income to either person. However, when there are business interests, passive income property, stock options, rental properties and other complex assets being divided between the spouses, the sale of those assets to satisfy the division of the property may carry separate tax consequences that must be taken into account when determining the after-sale value of an asset a party is receiving. It is important to know how those taxes will impact the value of an asset as well as the taxes you may need to pay related to the asset. At Jensen & Leiberan, we have years of experience dealing with the tax consequences of divorce and will help you determine the taxes you may have to pay as a result of property distribution, or the tax benefit you may be receiving. We also have a list of experts to whom we refer you when you need a comprehensive picture of your tax situation.
In the event that there is a need for divorcing couples to file for bankruptcy, we will work with your bankruptcy attorney to ensure that relief sought in one case does not cause unexpected consequences in the other case.
To discuss your concerns over division of property, please contact a lawyer at Jensen & Leiberan in Portland, Oregon.