One of the most painful experiences that you can go through is to go through a divorce. Whether you’ve instigated it or not, there is still a grieving process to feel because your life didn’t turn out the way you imagined it would when you walk down the aisle.
The thing is, most people believe that divorce is going to be a financially devastating thing, but it doesn’t have to be. One of the biggest challenges that most couples will face during a divorce is the division of the assets that they brought in and that they built together while they were a romantic couple. Whether it’s real estate or a retirement account, understanding the process of making your divorce a peaceful one by having your assets split amicably is important.
You need to make sure that no matter what you do you have good legal representation on your side no matter which side of the divorce you are on. If you’re pushing for your kids to receive anything from the divorce such as using a Quit Claim Deed to transfer property, This all needs to have good legal representation from day one. So let’s take a look at how you can make your divorce a peaceful one.
- Layout what you brought to the table. If you brought a home into your marriage and your spouse moved in with you and you previously owned your home before they even got there, you still may need to give them a percentage of its worth. Understanding the distinction between marital and separate property is important. Marital property is anything that you acquired together such as shared investments, joint bank accounts and even homes or vehicles separate property conversely usually is the assets that’s owned by one of you before the marriage. Laying out what you brought to the table can help you with the division.
- Gather your paperwork. You’ve got to be both transparent and organized when it comes to dividing your assets. Collecting up all financial documents, including your bank statements and investment accounts, loan statements, tax returns and property deals is important. Bring your paperwork to your lawyer and get them to sit with you to go through every single asset to make sure everything. Is accounted for. You don’t want to have any surprises or missed items that could lead to an imbalance settlement that ends up with a costly court case later on. It might be helpful to speak to an adoption lawyer when it comes to your parental rights and how your situation might change after a divorce.
- Don’t forget taxes. There are tax implications that can impact the value of divided assets, so understanding them is critical for a settlement that is fair. Withdrawing money, for example, from retirement accounts can trigger early withdrawal penalties and taxes. This reduces the actual cash value of the asset itself. Consulting with tax professionals as well as your lawyer can be invaluable, as they can help you to figure out whether or not you end up with a messy situation.
Money makes the world go round, but it can be a big, contentious issue in a divorce. Make your divorce a peaceful one by settling your assets and your money issues as early as possible.
