What to Consider When Dividing Assets in a Divorce
Celebrity Divorce Lawyers Explain What to Consider When Dividing Assets in a DivorceWhen it comes to dividing assets in a divorce, not all assets are created equal. At least not from an emotional perspective. Often, the process of dividing real property and personal property can be a battle between a divorcing couple. If you fear that this may be an issue during your divorce, make sure you have an experienced and financially savvy family lawyer at your side.
Issues that Make Dividing Assets ChallengingWhen one person has a physical, emotional, or other type of attachment to an asset, the ability to calmly and rationally discuss splitting the person and the asset can be challenging. Additionally, sometimes one partner has a life situation that places him or her in a position of, for example, needing liquid money. If the other spouse does not have a short term need for cash, perhaps retirement benefits or other assets are more appealing. And of course, let’s not forget the tax consequences of property division that can impact the long-term financial future of divorcing spouses (liquidation creates a taxable event). Your Los Angeles divorce lawyer should be taking all of these factors into consideration when discussing the division of assets with your soon-to-be-ex.
Do’s and Don’ts Of Asset DivisionAre you and your soon-to-be-ex partner beginning the process of dividing assets? A few do’s and don’ts to consider… Do:
- Know the purchase price of a real property asset (i.e. a home, beach house, investment property) and the costs of all improvements.
- Understand what the capital gain will look should you sell the family home.
- Obtain expert business valuation if are involved in a family business or contributed to your partner’s business (includes equipment, real estate, goodwill, customer lists, etc.).
- Get an appraisal for collectible items / personal property.
- Liquidate a 401(k).
- Sell an asset that will result in the biggest capital gain.
- Sell an asset without getting a fair price.
- Forget digital assets.