When a Divorce Action is commenced, almost no one looks forward to the dizzying task of dividing up matrimonial assets.
This is especially the case when couples have multiple streams of income and investments, or are at least one partner is high-earning.
In these situations, the division of assets becomes especially complicated. Add children to the mix and the whole thing starts to feel like the equivalent of rocket science.
It is no wonder then that so many people make mistakes along the way, such as overlooking assets.
When couples have been married for a long time, or income is generated from multiple sources, it can be hard to keep track of everything that needs to be divided.
Because of this, when people do not rely on professional guidance something usually falls through the cracks.
Bashian P.C. has ample experience not only handling general Divorce matters, but offers highly skilled legal counsel to high net worth clients that must identify, and divide, significant assets as a consequence of their Divorce.
The next mistake is forgetting to prioritize taxes. Sometimes couples may be more focused on the immediate dollar value of an asset, without considering the tax burden that comes with it. For example, the person selling the million-dollar house to downsize after divorce will face a different tax burden from the person who takes an extra million for their retirement account.
Another big problem that affects divorcing couples is keeping joint accounts. If one spouse likes to spend money without a second thought to where it comes from or enjoys racking up debt, it can only be in the other spouse's best interest to pull the plug on the accounts. It will also be necessary to update other types of shared assets, such as insurance, deeds and annuities.
According to CNBC, dividing up the 401(k) is another big hurdle. This not only requires tackling some emotional obstacles, but also legal ones. If one spouse was not working, they may rely on that 401(k) more than the working spouse for retirement as they have missed out on earning their full potential during the marriage. Sometimes a couple may need to wait until divorce is finalized before they can make all necessary changes to their 401(k) accounts.
For some people, divorcing is an easy process that requires very few disentanglements. These are couples who probably started out with prenuptial agreements, have nothing to contest in the divorce settlement and kept their properties and debt separate throughout the relationship. For everyone else, dividing up marital assets continues to be one of the most disliked tasks that accompanies the divorce process.