The legal definition of property settlement is that when a husband and wife agrees to divide all of their assets in equal shares in connection with their divorce.
As always property settlements rise out of parties entering into an agreement which is subject to the approval by the court or simply by a court order. Upon approval, the settlement works in the same way as a contract that can enforce or modify everything that is agreed upon. In some cases a property settlement is described in different terms such as settlement agreement, separation agreement, or property agreement, but their legal functions are the same.
All properties accumulated before or during the marriage shall be included in the property settlement. Alimony and issues about maintenance financial or otherwise may as well be included in the agreement. The custody of the children shall also be among the important matters which will be agreed on too.
Determining how the property will be divided can sometimes become difficult, especially when problems such as transmutation and commingling will occur. Commingling happens when couples decide to combine their property, which was accumulated separately, into a bank account or a joint account. The separate and marital property will become indistinguishable in this case. To avoid such scenarios from occurring, each of the spouses' lawyers will recommend them to keep individual records and accounts detailing their properties separate or marital. While transmutation happens when both spouses treat separate properties as marital properties, thereby making it impossible to identify which is which. One example of transmutation is when both spouses consider something as marital property, when in reality only one of them had purchased it. Therefore in order to prevent transmutation and commingling from happening is to keep clear and accurate records.
The valuation date can also cause problems with regards to the property settlement. The just distribution of some assets can be affected by the change in their value, this can sometimes determine which spouse will receive the said property. Several dates can be applied, the date of separation, such as the date of trial, the hearing date or the divorce date. With the proper evaluation of the properties whether they fall under "separate property" or "marital property" and once they are valued, both parties will then have to divide it equally among themselves.
A prenuptial agreement would be of great help when it comes to property settlement, because it clearly defines the properties that is to be included as marital and those that are to be separated. This is for the protection of the interests of the spouse who has accumulated the properties by themselves, and to divide the assets equally among their legal obligations in case they'll re-marry.
Are you getting a divorce or planning to fight over child custody with your spouse? Do you have an unsettled dispute with someone and you're in need of expert help? Then perhaps it's time that you go see a Family Lawyer Toronto in order to get assistance in matters such as this. Visit their website at http://toronto-family-lawyer.com/ to get consultation and expert advice on divorce, legal family issues and other things which may require the help of a family lawyer.
