This screen is a very useful screen to help you divide the assets between the parties.
In community property states, the title of the screen will be “Division of Community Property.”
In marital property states, the title of the screen will be “Division of Marital Property.”
In all states, this report shows only the marital property; separate property is “off the table” for purposes of this screen.
Basic Operation
You will see a row for each asset that has been entered.
Although there are additional options, usually there will be four columns for data entry.
These columns are:
- Party A Percent.
- Party A dollar amount.
- Party B Percent.
- Party B dollar amount.
The unique thing about this table is that you can enter a number in any of these four columns, and the software will automatically adjust the other three.
So if you enter a number in Party A Percent, the software will adjust Party A dollar amount to reflect that percent, and then it will adjust Party B Percent and Dollar Amount to reflect Party B’s share.
Above the chart of assets, you will see the totals — dollars and percentages — for each party.
Again, this is reflecting division and totals only of the marital assets.
The separate property generally stays with the party whose property it is.
This can be changed, however, on the “more info” screen for each asset.
On the Reports > More Reports screen, there is a report called “Total Property Division,” which shows the division of property including both the marital and separate property.
The Graph
In the upper right hand corner, there is a graph, either a pie chart or a bar chart, depending on your selection.
If it is a pie chart, it will show how much of the marital assets that have been allocated so far are going to each party.
If it is a bar chart, it shows the dollar amount of assets to Party A, the dollar amount to Party B, and the amount that has not yet been allocated to either party.
You can decide which graph to show by clicking the link at the top for “Equalization Payment and other options.”
Equalization Payment
The Equalization Payment (or Equalization Amount) is the amount of assets needed to be transferred from one party to the other in order to end up with a 50/50 split.
If this amount is showing on the screen, it will appear near the top of the screen, immediately below the parties’ totals.
If you do not see this amount, click the checkbox to show how far the parties are from a 50/50 or other split.
By default, the software will aim for a 50/50 split.
But you can aim for any ratio you choose. Just change the first number on the equalization payment line from “50” to any number you choose.
Please be aware that this shows that equalization amount only with respect to assets that have been allocated so far.
If there are assets you have not yet allocated to either party, they will not be counted in the Equalization Amount.
So this becomes useful only when all of the assets have been allocated to one party or the other.
Show Subtotals
At the top, you can also check a box to show subtotals of retirement and non-retirement assets.
You can then divide each group 50/50 if you with.
This is an approximation of an after-tax property division. It is much more accurate to do that using the Property After-Tax worksheet.
Show Separate Property
There are also options relating to showing separate property on this screen.
This can be useful if you would like to see separate property as you are dividing the marital property.
Property Settlement
If you create a Property Settlement (which is done on the Assets & Liabilities screen, at the bottom), and you choose the option on this screen to show property settlements, then the Property Settlement will appear here as an asset of the party who is receiving the settlement and as a debt of the party who is paying the settlement.
This is a graphical way of showing that you have provided a way for the parties eventually to reach a 50/50 split. (Or whatever ratio you have chosen.)
If the property settlement appears, then it will count toward the equalization payment, unless it has been specified as a Reimbursement.
The specification is made where the property settlement is entered.
Change Actual Property Values
On each line, there is a “more info” link that allows you to rapidly access the full information about the asset.
So you can change the value or separate property allocations, for example, and then return to the Property Division screen.