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Simple English definitions for legal terms
asset
Read a random definition: Enrollment Office
A quick definition of asset:
An asset is something valuable that belongs to a person or a group. It can be a physical thing like a house or a car, or something you can't touch like a patent. When people get divorced, they have to divide their assets and debts. In finance, assets are important because they help determine how much money a company can borrow and how much it's worth.
A more thorough explanation:
An asset is something that has value and is owned by an individual or organization. It can be a physical object like a building or an intangible object like a patent. Assets are important in many areas of law and finance.
- In family law, marital assets are resources that were acquired during the marriage. These assets are divided between the spouses in a divorce settlement.
- In child support cases, the non-custodial parent's assets are taken into account when determining the amount of child support to be paid.
- In finance and corporate law, assets are used to determine the value of an organization. This affects the amount of debt the organization can receive, the interest rates on that debt, and the organization's tax obligations.
These examples illustrate how assets can be used in different contexts. In family law, assets are divided between spouses in a divorce settlement. In child support cases, assets are used to determine the amount of support to be paid. In finance and corporate law, assets are used to determine the value of an organization and its financial obligations.