Even individuals who have never gone through the process may know that divorce can be a trying time for anyone. As a result, many Florida residents who are facing separation may be concerned about the process, especially if considerable net worth is involved. High asset divorce could lead to substantial financial concerns for the divorcing parties, and therefore, they may wish to keep certain factors in mind.
Initially, some individuals may overlook the tax implications of maintaining ownership of certain assets, funds or received payments. For example, an individual may be better off financially being the owner of a brokerage account rather than a tax-deferred retirement account due to the retirement funds being subjected to income tax for withdrawals. Additionally, taxes could be levied against individuals who receive alimony payments while the payor may use the payments as a tax deduction.
A similar predicament could come about when it comes to ownership of other assets. Because some property may be considered illiquid, or more difficult to sell, a piece of property that has a high valuation may not be quite as useful if an individual is unable to gain money from the asset when in need. As a result, individuals may wish to consider usefulness, liquidation ability, sentimental value and monetary value when negotiating property division issues.
If finances are a particular concern for Florida residents facing a high asset divorce, they may wish to gather as much information regarding their finances as possible. Compiling this information could help them be more prepared when it comes to determining which assets and funds they may consider most important to them. In addition to personal organization, consulting with an experienced divorce lawyer could potentially assist individuals in working toward their desired outcomes.
Source: Time, "Keep a Divorce From Killing Your Finances", Jill Schlesinger, March 1, 2016