The process of divorcing generally involves splitting up the assets of the separating couple, so familiarizing yourself with what assets actually are can prevent any rude surprises in the event you do get a Wisconsin divorce. By knowing what can constitute an asset, you will understand what a divorcing spouse might try to claim. Nerdwallet explains that assets come in multiple categories, and sometimes an asset may fit more than one category at a time.
Money is perhaps the most obvious asset people think of. Money is classified as a cash or cash equivalent asset. These assets are typically found in checking or savings accounts. Cash equivalents can also take the form of a certificate of deposit. Some forms of money are considered to be fixed income assets. In addition to a certificate of deposit, fixed income money can include government bonds and securities.
Property is another common asset category. Property can include a house or a lot that you may own. Additionally, vehicles, like cars, trucks or boats would also qualify. These assets are known as tangible assets. Basically, a tangible asset is something you can touch. Think of a valuable painting. Physically, that asset exists and can be transported and manipulated. By contrast, intangible assets do not have a physical form. These include pensions, royalty payments, bonds, and stocks.
Stocks and bonds also fall under the category of liquid assets. If you have something that can be converted to cash swiftly with a sale and its price is not affected by the sale, it is considered a liquid asset. Some assets, although they can be sold, are not considered liquid assets. These fixed assets take longer to turn into cash and may change in value during the sale process. Furniture, equipment and property are considered fixed assets.
People may also possess equity assets. Equity refers to ownership, and can include stocks, a retirement account, and also an ownership interest in a business. Ownership can be a point of contention in a divorce if both spouses co-own a business or property. A court may rule for the company to be sold so that one of the spouses can cash in on his or her ownership interest.
Please be aware that while this article is written to educate readers on assets and divorce, it does not give any legal advice.