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How Is Property Division Handled in a Divorce in Oregon?

How Is Property Division Handled in a Divorce in Oregon?

Written by George McCoy on . Posted in Family Law.

Asset division during divorce can feel overwhelming, especially when considering the emotional and financial importance certain properties have. This often has long-lasting effects on the lives of both spouses and is further complicated by such factors as debt, taxes, and monetary spousal support. Because of the complexity of Oregon divorce laws, the division of property should be approached with caution and attention to detail.

Property division is often one of the most complicated and sensitive issues in the divorce process. An understanding of the laws of equitable distribution is necessary. Because this is such a nuanced approach, it’s wise to consult with an experienced, trusted family law attorney, such as those at Warren Allen LLP.

Overview of Oregon Divorce Laws

Oregon’s divorce laws are based on the principle of equitable distribution. This is where marital assets and debts are divided fairly and justly, however, not necessarily equally. In Oregon, the court uses various factors to determine a fair division of property.

The process of distributing assets and debts involves making lists and evaluations of marital assets and debts and can be affected by such factors as the marriage’s length or each spouse’s income and earning capacity. Assets and debts may be treated differently based on whether they were obtained prior to or during the marriage or received as inheritances or personal gifts.

Due to the complexity of Oregon divorce laws and the high stakes of the results, the assistance of legal representation should be strongly considered.

Dividing Assets During a Divorce in Oregon

When distributing assets during divorce in Oregon, the main interest of the court is to equitably and justly divide the marital property. To do this, the court has to determine what each asset is worth, typically using such factors as fair market value, original purchase price, and appreciation in value over time. Real estate, retirement accounts, investments, and automobiles are a few examples of such assets.

Real estate, for instance, is valued based on what it’s worth on the current market, minus outstanding mortgages or liens against it. Retirement accounts are typically equitably divided based on present value and considering the age and life expectancy of the owner of the account.

Oregon divorce laws provide a general framework for the division of assets, but each case is unique, and the court’s decisions are based on specific circumstances. Consulting with an experienced family law attorney can help you better understand your rights with regard to asset division and ensure that your interests are represented throughout the divorce process. Don’t risk losing your fair share of the marital assets simply due to a lack of knowledge.

Dividing Debts During a Divorce in Oregon

In Oregon, the division of debt in the case of divorce holds as much importance as assets and can be just as complex. The state law divides debts according to their incurrence and based on who incurred the debt, who enjoyed the fruit of it, or whether its purposes are marriage-related, individual, or related to a dependent. For instance, individual education loans are going to be treated differently than home loans held in the name of both spouses.

Different types of debts are also divided differently. Secured debts, like mortgages and car loans, are often divided based on the underlying asset’s value and remaining loan balance. Unsecured debts, like credit card debt and medical bills, may be divided based on each spouse’s income and earning capacity.

Addressing debt division during divorce is critical, as failing to do so can lead to financial consequences and credit damage for either or both parties. It’s important that all the couples’ debt is accounted for. If you are unsure where money might be owed, look through your bills, talk to potential creditors, and run a free credit report so you can create a complete list.

Additional Factors That Influence the Court’s Decisions

In addition to the factors already mentioned—the duration of the marriage, current income, and earning capacity of each spouse—Oregon courts take several additional things into account when deciding on the division of assets and liabilities.

Ultimately, the court seeks to provide a reasonable standard of living for each spouse after the divorce. So financial needs and resources, based on age, health, and education level, are also taken into consideration. For example, a spouse who has been absent from the workforce to care for the children may be awarded more financial support. Tax implications and spousal support, in addition to child support, are other relevant equities on which the courts may make decisions for just and equitable division.

Marital resources involve many ambiguous factors, making it all the more important to work with a qualified family law attorney to help you secure your financial future and protect your rights.

Next Steps

A solid understanding of Oregon divorce laws is a must for a fair and equitable outcome in your divorce. The principles of equitable distribution, factors influencing court decisions, and the importance of addressing debt division must all be considered. The complexities of property division alone can be overwhelming, but seeking advice from a qualified attorney can provide much-needed guidance and reassurance.

At Warren Allen LLP, our experienced lawyers are committed to providing individuals with skilled help through difficult divorce issues, such as property division, custody negotiations, spousal support, and securing financial futures. Being a valued source of knowledge and advice in matters related to divorce laws, we invite you to call or contact us today for a consultation.

Divorce is a monumental life decision and a process that should be well thought out. A better understanding of Oregon divorce laws, along with professional advice, will help safeguard your rights and interests for an easier transition into the next phase of your life.

Property Division Under Oregon Divorce Laws: What to Expect

Property Division Under Oregon Divorce Laws: What to Expect

Written by George McCoy on . Posted in Family Law.

Going through a separation and divorce is one of the most stressful experiences a person can have. Financial security, distribution of assets, and even alimony and child support considerations can be huge stressors, along with the emotional toll that divorce causes. There are many aspects to Oregon divorce laws, and reliable, knowledgeable, and skilled divorce attorneys are necessary to help navigate them.

Our experts here at Warren Allen LLP field many questions about property division and how it works. While there is no way to determine what judicial order might encompass, there are ways to gather and provide as much information as possible to help your divorce be less stressful. Here is a short guide on property division under Oregon divorce laws and what to expect:

Equitable Distribution

Oregon is considered an equitable distribution state. Equitable distribution means the court will consider several factors in dividing up marital assets and what they believe to be marital assets to divide them up equitably. In some ways, this is an attempt to have a fairer distribution versus community property, where everything is divided 50/50.

The types of property that the court considers are real property and personal property. Real property is any land, buildings, homes, and condominiums. Mobile homes on rented land are not regarded as real property.

Personal property can include cars, jewelry, furniture, pension plans, retirement accounts, bank accounts, investment accounts, airline miles, cash on hand, and businesses. Any art collections, valuable collections, even life insurance policies, expected inheritances, and annuities are to be documented in what is submitted to the court.

Types of Documentation Needed

This is where part of the nuances of equitable distribution comes into play. While it may seem like Oregon divorce laws are attempting to be more fair in the distribution, proper documentation and evaluation are needed in order to do that. Providing the correct documentation of assets and liabilities is critical.

Real property requires an appraisal. Any businesses will also need an appraisal. Some personal property like vehicles, jewels, art, and collections will also need some form of assessment. Also crucial for documentation is the dates when either party in the marriage acquired these items. In some instances, assets and liabilities may not be subject to splitting under equitable distribution.

All mortgages, loans, credit cards, pending college tuition payments, student loan debts, and even pending lawsuits should be documented in what is given to the court. Even outstanding debt on businesses, tax debt, and future tax debt need to be considered.

While the court does not require documentation other than what they request, if there is a dispute on any of the value of any items, it’s better to have documentation available to support it. Consider gathering deeds, titles, bank and credit card statements, and other relevant information. If there were a prenuptial agreement, a copy would most assuredly be relevant in this case.

Filings to Submit to the Court

The court requires a submission of all of the assets, real and personal properties in the Statement of Assets and Liabilities form. This is where things get very specific, and distinctions are to be made. The courts want respondents to file this jointly and come to a decision on how and what is divided, but sometimes, that is not possible. If that is the case, each party needs to file this statement.

Regarding retirement accounts, the courts require filing a Qualified Domestic Relations Order (QDRO). This is a complex document with the specific language needed by the financial and pension institutions in order to distribute. Incorrectly filing this out will be costly regarding time and money and is critical to the next step in the divorce process. The QDRO will instruct the retirement account holders on how these accounts will be split up and enable them to create two separate accounts based on that information.

Considerations Under Equitable Distribution

Most people don’t realize that these filings are to be agreed upon before submitting, if possible. Distributions must not be equal to be considered fair and equitable. This is where documentation and evaluation come into play.

Consider assets acquired before the marriage, like a house. Factors like how long the marriage lasted, how much the other spouse contributed to maintaining or renovating, and if they contributed towards the mortgage all become relevant to the distribution of this asset. If the house increases in value during the marriage, it can also affect how this asset is considered under distribution.

The same goes for debt. If a spouse had secretly run up credit cards for a gambling addiction and the other spouse was unaware, this might be considered differently. Still, if a spouse gets into debt after the separation, that might also be factored in. If there is business debt and even future expenses like tuition are all factors that weigh into equitable distribution.

There are a lot of factors that the courts consider when doing property division, and it can be complex. The court will look at many factors, including the age and health of the spouses, how much financial contributions each spouse made, and the earning power of each spouse. Child support, alimony, and current lifestyle are all considerations. The court considers non-financial contributions to the marriage, like a spouse made into the marriage for the other spouse to be successful in their career.

Property and asset division will usually come up in any divorce. While parties are expected to come up with an agreement, sometimes that isn’t possible without professional help. You can find expert advice from our team at the Warren Allen LLP website. Our experience has helped Portland area residents for decades, and you can count on our excellence in helping you navigate this difficult time in your life.