An equitable asset is an owned item with value that can only be distributed through a court of equity, ensuring fair and just distribution according to court rules. Examples of equitable assets may include intellectual property or specific types of investments.
A valuable item that can only be obtained through legal means, such as a lawsuit or court order, is known as an equitable asset. These assets are subject to payment only in a court of equity, meaning that they can only be claimed through a legal process. For instance, if someone has been wronged by another party and is seeking compensation, they may have a claim to an equitable asset. The asset in question could be property, money, or other valuable items that the court deems should be awarded to the injured party. A trust fund is another example of an equitable asset. The assets held in a trust are governed by the terms of the trust agreement and can only be distributed according to those terms. If a beneficiary of the trust believes they are entitled to more than what is being distributed, they may need to seek an equitable remedy through the court system.
An equitable asset refers to any property or asset that is subject to equitable principles, such as fairness and justice, rather than strict legal ownership. It may include assets held in trust, joint ownership, or assets subject to a court’s equitable jurisdiction.
While legal assets are governed by strict legal ownership and rights, equitable assets are subject to principles of fairness and justice. Legal assets are typically owned outright by an individual or entity, whereas equitable assets may involve shared ownership or be subject to specific conditions or restrictions.
Yes, equitable assets can be sold or transferred, but the process may be more complex compared to legal assets. Since equitable assets often involve shared ownership or specific conditions, any sale or transfer would require the consent and agreement of all parties involved or compliance with the conditions set forth.
If a dispute arises over an equitable asset, it is typically resolved through negotiation, mediation, or, if necessary, litigation. Courts may consider various factors, including the intentions of the parties involved, the principles of fairness, and any legal or equitable rights that may apply.
Yes, equitable assets can be included in a will or estate plan. However, it is important to consult with an attorney experienced in estate planning to ensure that the specific requirements and considerations related to equitable assets are properly addressed.
Yes, equitable assets may be subject to taxation, depending on the specific circumstances and applicable tax laws. It is advisable to consult with a tax professional or attorney to understand the tax implications related to equitable assets.
In some cases, equitable assets can be used as collateral for loans. However, the lender may require additional documentation or agreements to ensure their rights are protected in case of default. It is recommended to consult with a financial advisor or attorney before using equitable assets as collateral.
Yes, equitable assets can be divided in a divorce settlement. However, the division may not necessarily be equal or based solely on legal ownership. Courts will consider various factors, including the contributions of each spouse, the length of the marriage, and the principles of fairness, to determine an equitable distribution.
Equitable assets may have some level of protection from creditors, depending on the specific circumstances and applicable laws. However, it is advisable to consult with an attorney to understand the extent of protection available and any potential strategies for asset protection.
In certain situations, equitable assets may be subject to foreclosure. However, the process and requirements may differ from foreclosing on legal assets. It is recommended to consult with an attorney to understand the specific procedures and implications related to foreclosing on equitable assets.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/equitable-asset/
- Modern Language Association (MLA):Equitable Asset. dlssolicitors.com. DLS Solicitors. May 09 2024 https://dlssolicitors.com/define/equitable-asset/.
- Chicago Manual of Style (CMS):Equitable Asset. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/equitable-asset/ (accessed: May 09 2024).
- American Psychological Association (APA):Equitable Asset. dlssolicitors.com. Retrieved May 09 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/equitable-asset/
Our team of professionals are based in Alderley Edge, Cheshire. We offer clear, specialist legal advice in all matters relating to Family Law, Wills, Trusts, Probate, Lasting Power of Attorney and Court of Protection.
All author posts