Assets such as houses, rental property, retirement and pension plans, stock options, restricted stock, deferred compensation, etc…can make the division of property during a divorce a nightmare. Even if you and your spouse are on good terms, deciding who should get what can be quite a challenge.
Asset Not Just a Dollar Value
You should have a thorough understanding of each asset – meaning you understand its liquidity, cost bases and any tax implications that could be associated with its sale. Having a grasp of this will allow you to discern which assets will be best for your short- and long-term financial security.
Separate and Marital Property
It’s also important to understand the differences between Separate and Marital Property.
Generally speaking, Separate Property includes:
• Property owned by either spouse prior to the marriage
• Inheritance received by the husband or wife (either before or after the marriage)
• Any gifts received by the husband or wife from a third party (an example is your mother gave you her diamond jewelry);
• Payment received in a personal injury judgment for pain and suffering
Marital Property and Divorce
All other property that is acquired during the marriage is usually considered marital property regardless of which spouse owns the property or how the property is titled. It consists of all income and assets acquired by either spouse during the marriage including, but not limited to: Pension Plans; 401Ks, IRAs and other Retirement Plans; Deferred Compensation; Stock Options; Restricted Stocks and other equity; Bonuses; Commissions; Country Club memberships; Annuities; Life Insurance (especially those with cash values); Brokerage accounts – mutual funds, stocks, bonds, etc; Bank Accounts – Checking, Savings, Christmas Club, CDs, etc; Closely-held businesses; Professional Practices and licenses; Real Estate; Limited Partnerships; Cars, boats, etc; Art, antiques; Tax refunds.
For advice on divorce and property division and all it’s aspects, you need the expert law firm of Korol and Velen, certified family law specialists. Schedule a consultation today.