Experienced Attorneys Helping with Division of Community Property
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In any divorce case, the community property and debt of the husband and wife must be divided between them. If the parties cannot agree, then under Nevada law, the court is given the task of making an equal disposition of the community property to the extent practicable.
In some cases, the court may make an unequal disposition of the community property if the court finds a compelling reason to do so and sets forth in writing the reasons for making the unequal disposition. For instance, the Court can make an unequal division of community property with a finding that a party intentionally wasted community property. In some cases, even the negligent loss of community property can constitute grounds for an unequal distribution of community property.
Contribution of Separate Property to Acquire or Improve Property Held in Joint Tenancy
Property held in joint tenancy is normally divided equally. If one party, however, has made a contribution of separate property to the acquisition or improvement of property held in joint tenancy, then the court may provide for the reimbursement of that contribution.
To determine the amount of reimbursement, the court must determine the amount of the contribution of separate property that can be traced to the acquisition or improvement of property held in joint tenancy. That amount should not include interest or any adjustment because of an increase in the value of property held in joint tenancy.
Furthermore, the amount of reimbursement should not exceed the value, at the time of the disposition, of the property held in joint tenancy for which the contribution of separate property was made.
Factors for Reimbursement of Contributed Separate Property in Nevada
When the court is considering whether to provide for reimbursement of a party who had contributed separate property, the court must consider the following factors:
- The intention of the parties in placing the property in joint tenancy;
- The length of the marriage; and
- Any other factor which the court deems relevant in making a just and equitable disposition of that property.
The term “contribution” includes, without limitation, a down payment, a payment for the acquisition or improvement of property, and a payment reducing the principal of a loan used to finance the purchase or improvement of property.
The term “contribution” does not include a payment of interest on a loan used to finance the purchase or improvement of property or a payment made for maintenance, insurance or taxes on property.
Basic Principles of Community Property Law and Federal Taxation – Visit the Internal Revenue Services (IRS) website to learn more about how the IRS treats community property for purposes of federal taxation. Federal law determines how property is taxes. State law determines whether – and to what extent – a taxpayer has property or “rights to property” that are subject to taxation. Therefore, federal law is assessed and collected based upon a taxpayer’s state-created rights and interest in property. 220.127.116.11.2 (3-04-2011) address the federal taxation of Community Property. The theory underlying community property is that each spouse contributes labor for the benefit of the family and shares equally in the profits and income earned. Under this theory, each spouse owns an automatic 50% interest in all community property regardless of which spouse acquired the property. Find information on marriage, domestic partners, termination of community estate, annulment and the definition of community property.
Attorneys for Dividing Community Property
If you are concerned about the division of community and separate property in your divorce case in Las Vegas, NV, then contact the experienced attorneys at Mills & Anderson to discuss the unique facts of your case. During the initial consultation, you can learn what you need to do right now to protect your rights and what to expect at each stage of the case. Call (702) 386-0030 to schedule a consultation.