Courts divide property under one of two schemes: equitable distribution or community property.

Community property includes all earnings during marriage and everything acquired with those earnings. All debts incurred during marriage, unless the creditor was specifically looking to the separate property of one spouse for payment, are community property debts.

Separate property of one spouse includes gifts and inheritances given just to that spouse, personal injury awards received by that spouse, and the proceeds of a pension that vested before marriage. Property purchased with the separate funds of a spouse remain that spouse's separate property. A business owned by one spouse before the marriage remains his or her separate property during the marriage, although a portion of it may be considered community property if the business increased in value during the marriage or both spouses worked at it.

Property purchased with a combination of separate and community funds is part community and part separate property, so long as a spouse is able to show that some separate funds were used. Separate property mixed together with community property generally becomes community property.

1. You must identify all assets owned by you and your spouse.
2. You need to classify these assets as marital or nonmarital. In so doing, you must determine if the marital or nonmarital estate should be reimbursed for any efforts of a spouse or contributions made in acquisition of the asset.
3. The value of the assets must be determined.
4. You must establish a possible plan for the division of the assets in accordance with the laws of your state.

Overall, most states consider separately the division of the assets and liabilities from the grounds for the divorce. Therefore, the court is not attempting to punish your spouse for inappropriate marital behavior when it rules on assets. At the same time, several states consider economic misconduct in distributing assets. This economic misconduct is often known as dissipation of assets (such as running up bills, reckless expenses, maxing out the credit cards, etc.). The spouse who misappropriated or dissipated funds will be penalized for so doing in the final divorce decree.

Finally, if you and your spouse entered into a prenuptial agreement, also known as an antenuptial agreement, this agreement may control the distribution of some or all of your assets upon the dissolution of your marriage. This agreement may also address the issue of maintenance/spousal support and control most of the issues in your case. If you entered into such an agreement, you must review the agreement as soon as possible. You may also want to discuss the effect of the written agreement with your attorney.

Here are some suggestions:

• First, make sure that each of you has a complete set of financial documents.
• Second, It would probably be best to close any joint credit-card accounts. However, if you have not already established credit in your name, you should do so before the existing accounts are closed. In the interim, a formal written agreement between you and your spouse on the short-term use of these accounts or other potential sources of marital debt (such as equity lines of credit) would be helpful.
• Open individual bank accounts and separate whatever cash can be reasonably and quickly agreed upon.
• Investment assets that can not easily be separated should be frozen by calling and writing to the respective financial institutions.
• If there's a need to maintain a joint checking account, formalize in writing the purposes of the account and require both signatures on any future checks.
• Any existing ATM cards should be destroyed.
• To further reduce individual exposure, the titles on any large accounts, including the marital residence, should be changed to "tenants in common."
• Finally, joint safe-deposit box(es) should be jointly inventoried and frozen if necessary.

Although joint handling of the above matters can increase the likelihood that your assets will remain intact, it isn't without risk. It you have doubts that the two of you will be able to work together honestly and amicably, you should seriously consider immediate action to separate your finances. This will probably increase hostility, but the long-term benefits may outweigh the costs. (From divorcemage.com)

Historically, alimony was the law's way of enforcing a husband's duty to support and provide for his wife. Today's society recognizes the presence of both men and women in the workforce. Therefore, temporary alimony may be awarded to either spouse.

A spouse who wants alimony must make a claim before the court issues the divorce decree. Unless there was an act of fraud or a genuine mistake at the time the divorce was ordered, a spouse will not be allowed to assert a later claim for alimony.

Some common considerations in the allocation of alimony are:

• Length of the marriage,
• A spouse's inability to work outside the home,
• A spouse's dependence on the state for support,
• Lessening the financial impact of divorce,
• Compensation for contributions to a spouse's education,
• Marital fault,
• A spouse's ability to support himself or herself, and
• An evaluation of a spouse's property and assets.

Unless specified otherwise, alimony awards will end when either party dies. If the spouses intend that the care of a spouse will continue after the paying spouse dies, they should draft language to that effect into the divorce decree.

Caution: If you accept a lump sum alimony payment, you may face tax consequences. For example, if you receive a lump sum payment that's referred to as "alimony" in your divorce decree, you may be subject to taxes on the full amount for that year. But if the same payment is called a "settlement," you may not be taxed. Don't sign any documents or agree to any terms until you've consulted an expert, such as an accountant who specializes in divorce issues.