When you go through a divorce, your assets get divided. The way your assets get divided can be decided in one of a few ways. You could, for instance, have a prenuptial agreement that predetermines how your assets are split. On the other hand, you could go to court and have a judge decide on a fair and equitable agreement for your property division.
Assets aren’t necessarily divided based on their current value, which is something you should consider. If you counted a retirement account at its current payout, it would be significantly lower than it will be in a few decades, for instance. The same may be true for stocks. So, the best way to divide assets like these can be to decide on a payout percentage, and that percentage then gets paid when the funds are finally withdrawn.
Remember that there are some tax implications from accepting assets in divorce. You may have to pay taxes on certain items, so be sure to understand what you’ll need to pay for the items you want to have. For instance, you’ll have property and other taxes that come with a mortgage; those don’t go away just because you’ve won the home in the divorce.
There are some items you’ll be able to keep separate, but if you’ve commingled your property, be prepared for it to be considered as marital property. If you have questions, our website has some answers that may be of help. Whether this is a divorce involving minor or major assets, you deserve the information you need to make the right choices.