Sometimes during the process of a divorce, the spouse who was less involved in finances may not be entirely aware of what financial aspects they need to consider during negotiations for property division. One of these, for example, might be the value of assets, which can easily be overlooked but contain high emotional value.
Taxes on assets may also be overlooked. Non-Roth 401(k)s and deductible IRAs, for example, may have their economic value lowered by taxes and thus may not be as valuable as a Roth account. Someone in the midst of a divorce may also wish to take a look at past tax returns for tax assets, as this could provide a reduction in future taxes. Retirement assets can also be taxed if one is not careful. Spouses should be sure that a divorce decree states that an IRA should be treated as a transfer incident to divorce to avoid taxation.
Joint liabilities require special consideration in order to avoid surprise payments later on. Before a divorce is even finalized, joint accounts should be cancelled and joint mortgages should be refinanced. One should also consider their immediate need for cash flow during property division. Liquid assets, or assets that can easily be sold or cashed out, may be the best assets to strive for if one needs money as soon as possible.
Someone who is going through a divorce may wish to work with a lawyer during the process of property division. A lawyer could help a client understand which assets may be the best to fight for and which assets to avoid.
What Does An AV Rating Mean?
An AV® Rating, signifies that the lawyer has reached the heights of professional excellence. He or she has usually practiced law for a number of years, and is recognized for the highest levels of skill and integrity.
