Divorce is a life-changing event that not only affects emotions and relationships but also has significant financial consequences. One of the most crucial aspects of divorce is asset division, as it determines how wealth, property, and debts are distributed between spouses. In Wisconsin, which follows community property laws, marital assets are typically divided fairly—though not always equally. Understanding how asset division impacts divorce outcomes can help you protect your financial future. Working with an experienced family law attorney in Milwaukee, Wisconsin ensures that you receive a fair settlement while avoiding costly mistakes.
1. What Assets Are Subject to Division?
Before dividing assets, courts distinguish between marital property and separate property:
- Marital Property: Includes assets acquired during the marriage, such as income, real estate, retirement accounts, business interests, and even debts. These assets are generally divided between spouses.
- Separate Property: Includes assets owned before the marriage, as well as inheritances and gifts given to one spouse alone. However, if separate property has been commingled with marital assets (e.g., placing inherited money in a joint bank account), it may be subject to division.
2. Wisconsin’s Community Property Law
Wisconsin is a community property state, meaning that courts assume marital property should be divided equally between spouses. However, an equal split isn’t always fair, and courts consider various factors when making adjustments, including:
- The length of the marriage
- Each spouse’s income and earning capacity
- Contributions to the marriage, including financial support, childcare, and homemaking
- The value of separate assets owned by each spouse
- Tax implications of asset division
- Misconduct affecting finances, such as hiding assets or excessive spending
3. High-Value Assets and Their Impact on Divorce
Some assets require special consideration due to their complexity and financial impact:
- Real Estate: The marital home is often the most valuable asset, and couples must decide whether to sell it or allow one spouse to keep it in exchange for other assets.
- Retirement Accounts and Pensions: These often require a Qualified Domestic Relations Order (QDRO) to ensure proper division without tax penalties.
- Business Ownership: If a business was established during the marriage, it may be subject to division, requiring a professional valuation.
- Debts and Liabilities: Marital debts, including credit cards and loans, must also be divided fairly between spouses.
4. The Role of a Divorce Attorney in Asset Division
An experienced Milwaukee divorce attorney plays a vital role in:
- Ensuring proper valuation of assets
- Protecting separate property from unfair division
- Negotiating a fair settlement that aligns with your financial future
- Identifying hidden assets if one spouse attempts to conceal wealth
Conclusion
How assets are divided in a divorce significantly impacts both spouses’ financial stability. Understanding Wisconsin’s community property laws and working with a skilled Milwaukee divorce attorney can help ensure a fair and equitable outcome. Whether negotiating a settlement or litigating in court, legal guidance is essential to protecting your wealth and securing your financial future.