One of the tasks of a divorce court is to determine how the couple’s property and debts are divided between them. This requires identifying which property and debts are subject to division and which are separately owned. Your attorney plays a vital role in the process, helping you protect the right to your fair share. Miley Law Firm, P.C. has the skill and knowledge to secure the best result for you that the law allows.
Nevada's Community Property Laws
Nevada’s community property laws dictate that most property acquired during the marriage is classified as community property and is subject to equal division in the event of divorce. Under these laws, both spouses have an equal claim to all community property, regardless of whose name the property is in. Exceptions exist for separate property, which includes assets owned prior to the marriage, gifts, and inheritances. It’s important for individuals going through a divorce to understand these laws, as they directly impact property division outcomes. Consulting with an experienced divorce attorney can help ensure that your property rights are protected throughout the divorce process.
What is a Distribution of Property?
The distribution of property refers to the process by which a court divides marital assets and debts between spouses during a divorce. This process involves identifying what constitutes marital property versus separate property and determining how to equitably divide the assets. In Nevada, the default rule is a 50/50 division of community property, but the court may consider factors such as mismanagement of assets or a valid prenuptial agreement when deciding on the final distribution.
What is the Difference Between Marital and Separate Property?
In a community property state like Nevada, the divorce court makes a distinction between marital property, which it must divide between the parties, and the separate property that each spouse keeps. Separate property includes:
- Property a spouse acquired before marriage
- Property a spouse received as a gift, inheritance or personal-injury compensation, whether before or during marriage
- Any income earned from separate property that has not been commingled or used for common purposes
All other income earned, property acquired and debts incurred during marriage are considered marital in nature. Each spouse has the burden of proving that any item is owned separately. I understand all nuances of this distinction and will present the best case for classifying property and debts in the manner fairest to you.
How is Property Divided?
Under Nevada’s community property law, a divorcing couple’s marital property and debts are generally divided 50/50. The assets to be split may include money, the marital residence and other real estate, tangible personal property, such as jewelry, and less tangible items, such as income, dividends, retirement accounts and other benefits.
Unlike states that use an equitable distribution method, Nevada courts do not take certain factors into consideration to depart from a 50/50 division of assets, such as the fact that the marriage has lasted a significant length of time or that one of the spouses has more resources or needs. However, the court will consider a spouse’s adultery or other fault that may have affected the marital property, such as where one spouse has wasted or hidden assets. The court will also honor a valid prenuptial agreement that provides for how property will be divided upon divorce. I try to work out divorce settlement agreements that make the fairest distributions to my clients, but if necessary and justified, I will aggressively make a case in court for unequal division.
Is Nevada a Community Property State?
Yes, Nevada is a community property state. This means that most assets and debts acquired during the marriage are considered jointly owned by both spouses. In a divorce, community property is typically divided equally, regardless of who earned or purchased it.
Community property includes income earned by either spouse, real estate acquired during the marriage, and personal belongings bought with marital funds.
However, certain assets are classified as separate property and are not subject to division. Separate property includes:
- Property acquired before marriage
- Gifts and inheritances received by one spouse
- Income generated from separate property that has not been mixed with community assets
Consulting with an experienced divorce attorney can help ensure that your rights are protected and that you receive a fair distribution of property.
Why You Need Help with the Valuation of Assets
Accurately valuing marital assets is a critical step in securing a fair division of property, especially when high-value or unique assets are involved. Working with an experienced divorce attorney can make all the difference in ensuring this process goes smoothly and that you receive the most favorable outcome. Here’s how an attorney can help:
- Identify All Assets – Ensuring that all assets, including those that may be hidden or undervalued, are properly disclosed. This includes uncovering complex assets like retirement accounts, stock options, and business interests that may be overlooked.
- Engage Valuation Professionals – Determining the accurate value of unique assets, such as business interests, real estate, or valuable collectibles, often requires professional appraisers and accountants. Your attorney can coordinate with trusted professionals to provide precise valuations, giving you a clearer picture of the marital estate’s worth.
- Analyze Financial Documents – Evaluating financial records meticulously, identifying inconsistencies or irregularities that may affect asset value. By analyzing bank statements, tax returns, and investment portfolios, your attorney helps ensure the final valuation is as accurate and comprehensive as possible.
- Assess Future Worth and Tax Implications – Some assets, such as retirement accounts or investments, may appreciate in value or carry future tax liabilities. Your attorney can help you understand these long-term considerations, aiming to protect your financial future.
- Negotiate for the Best Division – With a clear valuation, an attorney can advocate for a division that reflects your best interests, either by negotiating with the other party or by making a compelling case in court.
- Minimize Conflict and Delays – Valuation disputes can be time-consuming and costly. An experienced attorney anticipates potential conflicts, actively works to resolve them, and helps streamline the process so that you can move forward with confidence.
Having a knowledgeable attorney by your side can make the entire property division process smoother and more effective, ensuring that your rights are protected and that you secure the assets you deserve.
Contact a knowledgeable Nevada marital property distribution lawyer for a consultation
At the Miley Law Firm' P.C., I fight to protect the property rights of my clients when divorce courts classify, valuate and divide marital property. Please call 702-942-0600 or contact me online to make an appointment for a meeting at my Las Vegas office.
Frequently Asked Questions
- What qualifies as community property in Nevada?
In Nevada, community property includes any assets or debts acquired during the marriage, such as income, real estate, and personal property. Exceptions include gifts, inheritances, and property acquired before marriage, which are considered separate property. - How is property divided in a Nevada divorce?
Nevada follows a 50/50 division of community property in divorce. This means marital assets and debts are generally split equally, although factors like prenuptial agreements or asset mismanagement may impact the final division. - Can I keep my separate property in a divorce?
Yes, separate property, such as assets owned before marriage, gifts, and inheritances, generally remains with the original owner. However, proving an asset's separate status may require documentation and legal support. - Why is asset valuation important in property division?
Accurate asset valuation ensures a fair division of property. Certain assets, like businesses or investments, may require professional appraisals to determine their current and future value. An attorney can coordinate this process for a smooth outcome.
