For couples who are thinking of getting a divorce, there are a lot of things that they have to consider. Two of the biggest challenges that a couple will face is determining a child custody plan and dividing marital property.
Though it may seem like a simple task, property division can become very complicated very quickly. During a divorce, the couple must list all of their assets, including things that may have been kept secret from the other spouse previously.
Many couple’s don’t know how complicated property division can be until they have to deal with it. A divorce is stressful enough; there are ways for couples who are thinking to get divorced to decrease that stress.
Couples should take the time to list their assets so that it is clear what property exists and how much the property is worth. It is easy to misjudge the monetary value of an object, especially if it’s old or carries a lot of sentimental value.
There are three suggestions in the article for ways that couples can determine the actual financial worth of their assets:
- Individual tax returns: these are helpful to determine the worth of investments or interest earned from other types of accounts
- Business tax records: a business can be a very valuable asset; it is important to understand just how profitable a business has been if one member of the couple owns it
- Asset appraisal: for jointly owned assets, couples should have the objects appraised to establish what the value for each object is; this can help eliminate disagreements during the process
One other thing for couples to remember is that some assets also come with a hidden price tag. Money that is in retirement accounts are subject to taxes when it’s taken out of the account, thereby lowering its value when considering property division. Ultimately, couples need to think about these things as they prepare for a divorce. It can make the process go much smoother in the long run.
Source: AOL: Daily Finance online, “Heading for a Divorce? Tally and Appraise Your Assets,” Matthew Scott, 13 January 2011