Tips When Dividing Property in a Divorce Get Complicated

Dividing property in a divorce can be tough, especially with Nevada’s community property laws.

While the idea is to split assets and debts fairly, certain situations can make things far from simple.

Here are five common challenges that can complicate divorce property division, along with tips on how to handle them.

1. Mixing Separate and Marital Property

Mixing or “commingling” happens when assets that belonged to one person before the marriage get combined with shared marital property. For instance, using an inheritance to renovate a jointly owned home can make it tricky to figure out what’s separate and what’s shared.

To sort it out, courts look at financial records to trace where the money or assets came from. If it’s clear that separate property was used, the person who contributed it might get reimbursed. But if everything’s too tangled, the court may treat it as shared property and split it equally

Keep clear records of any property or money you want to keep separate.

2. Hidden Assets

Sometimes, one spouse might try to hide assets to avoid sharing them. This could mean not reporting all their income, moving money to secret accounts, or undervaluing property.

Nevada courts take hiding assets seriously. If you suspect this is happening, your attorney can request financial records, bring in experts like forensic accountants, or issue legal requests to uncover hidden property.

If the court finds hidden assets, the person hiding them could face penalties, and the other spouse might get a bigger share of the property

Be open and honest about your finances. If you suspect your ex is hiding something, talk to a lawyer right away.

3. Prenups and Property Arrangements

Prenuptial agreements can make dividing property easier by setting the rules ahead of time. But they can also cause issues if one spouse challenges the agreement during the divorce.

A prenup could be thrown out if it wasn’t fair, if one person was pressured into signing it, or if it didn’t follow Nevada’s legal requirements. For example, if one spouse didn’t know about the other’s finances when signing, the court might ignore the agreement and divide property based on community property laws instead.

Make sure your prenup is properly drafted and follows all the rules. If you’re unsure, consult a legal professional.

4. Valuing Unique Assets

Determining the value of unique or non-liquid assets, such as businesses, collectibles, or intellectual property, can be particularly challenging. Disagreements often arise about the true worth of these items, especially when appraisals vary.

Courts typically rely on expert appraisals to assign a fair market value to such assets. However, disputes can still occur, requiring negotiations or court intervention to settle.

Work with qualified appraisers and financial experts to ensure accurate valuations and avoid potential conflicts.

5. Debts and Liabilities

Dividing debts, such as credit card balances, loans, or mortgages, can be just as contentious as splitting assets. In Nevada, debts acquired during the marriage are generally treated as community debts, even if only one spouse incurred them.

Challenges arise when one spouse disputes responsibility for certain debts or when determining how to handle jointly held obligations after the divorce. For instance, even if one spouse agrees to take on a debt, creditors may still hold both parties accountable.

Address debt division thoroughly in your divorce agreement, and consider refinancing or closing joint accounts to minimize future disputes.

Get Expert Help with Divorce Property Division

Property division in Nevada divorces can become complex.

If you live in Clark County, NV, and need legal help with commingled assets, hidden property, disputes over prenuptial agreements, valuing unique assets, or dividing debts, Smith Legal Group is here to help.

Contact us today at 702-410-5001 to request a free consultation at our Henderson, NV office.