Many spouses that have discussed terminating their marriage attempt to negotiate a division of marital assets without attorney representation or legal counsel. This approach to asset division may seem like a way to prevent the wealth accumulated during a long marriage from being squandered on legal fees and court costs, but the potential consequences of trying to create an appropriate division of assets and debts and attempting to draft an agreement that accurately represents that agreement often proves far more complicated than in initial discussions.
While most couples that have a substantial net worth in assets seek the advice of an experienced New Mexico Matrimonial Lawyer, some people underestimate what is at stake when negotiating the allocation of property and debts during a divorce. The parties initially may assume that they do not have much in the way of assets to divide before discovering that there may have several million dollars in assets to be divided when all real estate, closely held businesses and retirement accounts are considered.
New Mexico is one of a minority of states that has adopted community property law which generally directs that all “community property” is divided 50-50 between the spouses while the separate property of each spouse is usually kept by that spouse. While a New Mexico family law judge will presume that property acquired during the marriage is community property and subject to equal division, there are forms of property acquired during the marriage that are not treated as community property. These exceptions include property acquired by inheritance or gift to one spouse as well as assets acquired through investment of separate property funds or assets.
Many divorce trials focus on the proper characterization, valuation and division of complex assets. These assets may include assets where the value of the asset is open to debate as well as assets that have both a separate and community property component. The division of complex assets like closely held businesses, professional practices, stock options, intellectual property rights, deferred compensation plans, oil and mineral royalties, real estate assets with mixed separate and community property contributions and similar assets can have a dramatic impact on the future wealth and financial security of each party following a marital dissolution.
Our New Mexico Divorce Attorneys often work with a team of experts on issues of taxation, forensic accounting, business valuation and more to ensure that our client’s interest is properly protected during a marital dissolution. However, we also understand the importance of making prudent financial investments in the litigation process so that money spent on such experts is justified by the potential economic return. We inform our clients of the benefits of using an expert as well as the potential risks of proceeding without one so that our client can make sound decisions.
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The above information is designed solely to illustrate general principles of law, and does not constitute a specific legal opinion on individual cases. We suggest that you contact experienced legal counsel for a specific opinion tailored to your individual circumstances.
If you have questions about complex property division in a New Mexico marital dissolution, the Jay Goodman & Associates offers a free consultation in our centrally located offices in Santa Fe and Albuquerque so that we can discuss your situation and answer your questions. Call us today to schedule your free consultation at (505) 989-8117 to learn about your rights and options.
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