Florida residents who have decided to seek a divorce might expect the division of assets to be complex. However, they can prepare for the process to minimize disagreements and tension in the future.
Organize before negotiations begin
Going into negotiations without proper organization and planning can result in an unbalanced divorce settlement as well as additional tension between the ex-spouses. However, planning before the process begins can be the basis for a much more amicable negotiation. When planning for the division of asset process, individuals should do several things:
- Identify and address each type of asset and its value.
- Learn about the rules of dividing retirement accounts, which can be different for IRAs, 401(k)s and pension plans.
- Remember to include complicated assets such as stocks and cryptocurrencies, for which it might be difficult to establish value.
The family home needs careful consideration
Because the house is a major asset for many families, a lot of consideration should go into how the address the property during negotiations. While there might be a sentimental reason one person wants to keep the home, particularly if there are children involved and the parent wants to provide them with stability, this might not work for all couples. Options for dealing with the home during the division of assets include:
- Selling the home and splitting the profits, remembering that there will be fees and taxes involved
- Keeping the home for an established amount of time so that the couple can sell later
- Having one person buy out the other spouse’s ownership of the home
Look to the future
During the asset negotiations, it is also important to look toward the future. Couples should make sure they know the tax implications of transferring and selling assets. In addition, they should calculate the value of assets 5 or 10 years down the road. By keeping these things in mind, both parties may be able to go through the asset division process more smoothly.