Every family law attorney dreams of the 50/50 cash divorce. You know, the divorce where everything is divided in half and all assets are completely liquid. In reality an attorney will probably never see this kind of divorce financial settlement. Real life is more complicated. Luckily our law office management software is here to take the headaches out of property division calculations.
Not all assets should be distributed equally. Consider a family car that was purchased after marriage. In most cases this would be considered jointly owned by the couple. However what if the husband was a car buff and spent many hours installing aftermarket additions that significantly affected the value–either real or sentimental–of the vehicle? The couple might agree that the husband is entitled to 75% of the car’s value. Or maybe the wife owned the family house before the couple got married. Although it was refinanced in both their names, she might claim in full the $20,000 in equity that existed at the time of marriage.
Another problem is that many, we might even say most, assets are not easily liquidated. Yes you might be able to sell the family house or car, but there is no guarantee you can get the estimated value especially if you have to sell quickly. Plus families don’t want to sell assets with sentimental value. Other assets, such as a spouse’s defined benefit pension, can’t be sold for cash. Go back to the car example above. It’s not like the couple can just saw off 25% of the car for the wife and let the husband keep the rest. You need law office management software that can help you administer more reasonable solutions.
In the final divorce financial settlement the husband might get full ownership of the car but he will have to buy out the wife’s 25% ownership by giving up some other asset. In this case the Equitable Distribution of the car is 75% for the husband, but the Effectuating Distribution is 100%. Not all legal software programs can accurately track these details, and that forces the attorney to make these calculations by hand.
Divorce Financials is Easysoft’s law practice management software product and it allows the attorney to specify the Equitable Distribution of each asset, either by percentage or by dollar amount. A different Effectuation Distribution amount can also be specified so that the couple can trade assets to find a solution that is fair to each. The asset and liability report details each asset’s distribution as well as the distribution totals.
Download a demo of Divorce Financials or any of our other law practice management software titles to try them out for yourself. See how even the most complicated property settlement cases become simple with the help of the right legal software programs.