The divorce process can bring up many difficulties and emotions, especially when the divorcing couple has significant assets. The division of property becomes highly contentious as both parties often seek to retain as much as possible. For example, before leaving, one spouse might wonder, “Who gets the cabin and boat?”
In high-asset divorces, separating couples should review these tips on how to navigate this particular issue.
Understanding property division in divorce
Property division involves separating marital assets and debts between the two spouses. Marital assets are typically any assets acquired during the marriage, while separate assets include property acquired before marriage or through gift or inheritance. Property division aims to ensure that each spouse receives a fair and equitable share of the marital property.
Factors that may impact who gets the cabin and boat
When dividing property in a high-asset divorce, the court will consider a variety of factors, including:
- the length of the marriage
- each person’s financial needs and resources
- any prenuptial or postnuptial agreements
- earning capacity and potential
- each spouse’s age and health
- each party’s contributions to the acquisition, preservation and appreciation of property
The court may also consider additional relevant factors when dividing marital property, such as the contribution of one spouse as a homemaker.
Options for dividing the cabin and boat
One spouse may choose to keep the cabin, boat, vacation property or other marital asset and buy out the other spouse’s share. Alternatively, if sold, the court will divide the proceeds from the cabin or boat between the two spouses. In some amicable cases, divorcing couples might agree to share ownership of the property, either by alternating use or through a co-ownership agreement.
If both spouses want to keep the cabin or boat in a divorce, the court will establish ownership before property division.