Property Distribution & Debt Division

Property & Debt

Throughout the course of a marriage, parties accumulate property, whether it is real property (the “home”, a vacation “home”,) or personal property (“bank accounts”, “paintings”, “coin collections”, or “stamp collections”, “cars”) sometimes called the “stuff”.  During mediation it will be necessary to discuss what the parties have by creating a detailed list of what there is, then each party will create a list of both the real and personal property along with the fair market value of the property (its value today – not what the purchase price was).  It will also be necessary to create a list of what debt is owed by the parties, and whether the debt is directly associated with an asset (mortgage on home, car loan on the car or credit card debt are examples of some of the kinds of debt that people owe).

Then the parties will be in a position to start discussing the division of the property and the division of the debt.  At the beginning of any mediation it will be necessary for each party to disclose their current incomes and to bring with them their two most recent tax returns.  Also, of course, copies of the most recent loan statements, credit card statements, and bank and investment account statements will be necessary.  If one of the parties received a gift from a third person, such as money to help the parties buy their house, it may be necessary for that party to bring proof of that with them to the mediation.