In a divorce, ignorance is generally far from bliss. Failing to pay attention to even seemingly small details could have significant and long-lasting ramifications for a divorcing individual.
Among the things that it is particularly important to pay close attention to detail regarding in a divorce are assets. For one, it is very important for a divorcing individual to be aware of all the assets they and their spouse have. Failing to have the full picture regarding what assets are present could keep a person from having all the right information when making decisions in property division matters in their divorce.
Now, what assets are present is not the only asset-related thing it is important to ascertain when getting divorced. It is also important to be aware of the various details of the assets, such as:
- How the asset was obtained.
- When the asset was earned and received.
- The market value of the asset.
- What sorts of tax issues are related to the asset.
- Whether the asset is likely to gain or lose value over time.
- Whether there are any ongoing costs associated with the asset (like maintenance costs).
- How easy it is to sell the asset.
- Whether any special rules are connected to the asset.
Why do these sorts of asset details matter in a divorce? For one, some of them (like when and how the asset was obtained) touch on whether or not an asset is in the marital estate, which in turn impacts whether the asset is eligible for division in a divorce. Other of the above-mentioned details touch on important things like: what sorts of concerns would come from splitting the property, how much actual value the asset has (both currently and in the future), what sorts of asset splits would be the fairest and which assets an individual might want to put the highest priority on getting in property division negotiations.
Experienced family law attorneys can assist divorcing individuals with collecting information on the details of the assets in the divorce, understanding the implications of these details and developing a strategy for property division proceedings and negotiations that takes these details and other important information into account.
Source: CNBC, “Breaking up is hard to do: Protecting assets in divorce,” Kelli B. Grant, Jan. 17, 2016