Divorce & Division of Property and Debt

The major distinction when dividing property during a divorce is determining “Community" property and “Separate" property. Community Property is generally defined as all property acquired after marriage by either husband, wife, or both. Separate Property is property owned by either spouse before marriage or that one spouse acquired after the marriage, received by gift, descent or part of a personal injury award.

During the divorce the property will need to be divided. You and your spouse may agree to the division to the property or a judge will divide the community property equally between the divorcing couple. A judge will typically award separate property to each respective owner of the property.

Speak with a Las Vegas Divorce Attorney (702) 914-0400 about your questions of dividing property or debt.

Examples of Community Property

• Real Estate
• Automobiles or Other Vehicles
• Stocks, Bonds, Cash & Savings Accounts
• Individual Retirement Accounts (IRA's), Pension Plans, 401K's or Other Funds Designated for Retirement
• Cash Value of Life Insurance Policies Furniture and Personal Belongings Business or Business Property
• The Increase of an Asset Acquired Before Marriage

Examples of Separate Property

• Property Acquired Prior to Marriage
• Inherited Property
• Gifts to Either Spouse by a Third Person
• Portions of a Personal Injury Award or Workers Compensation Award
• Car Accident & Personal Awards

Examples of Community Debt

• The Mortgage Balance on a Home
• Home Improvement Loan or Second Mortgage
• Any Debts Owed to Banks, Savings, or Lending Institutions
• Car or Boat Loans
• Credit Cards
• School Loans (if not premarital)
• Loans Payable to Relatives or Friends
• Unpaid Medical Bills

Nevada Courts have established that the labor and skills of a spouse are considered to be a community asset and that income generated during the marriage from such labors and skills is considered community property. This becomes an important issue when looking at a business owned by either spouse. The community shall receive a fair share of the profits from the business owned during the marriage. If a spouse owned a business before the marriage then mostly the growth or profits of the business during the marriage shall be considered community property.

It should be noted that all or portions of retirement accounts like a 401(k), IRA or pension plan are considered community property and the accounts are divided as such. A QDRO (acronym for "qualified domestic relations order") is needed to properly divide the retirement account or pension benefit that is part of the community property. A Nevada QDRO should only be drafted by an experienced attorney.

Contact a Las Vegas Divorce Attorney at (702) 914-0400 for more information regarding  division of property or debt during a divorce.