Although the divorce process is often complicated, divorcing spouses in Pennsylvania should strive to be cautious the entire period. There are so many avoidable mistakes that people make during this period. The process of asset division can be a long one, and you are prone to make mistakes if you let emotions cloud your judgment. Here are some common mistakes that divorcing couples make when dividing their assets.
Lack of professional advise
Some spouses don’t involve an attorney when splitting their assets. The importance of having an experienced lawyer to guide you through the murky water of divorce cannot be overemphasized. Sadly, some couples don’t involve one early enough.
The onset of divorce means that there are long-term and significant financial issues at stake. Involving a lawyer may help ease some of these complications during the asset division process.
Thinking that all assets are equal
Most people think that because assets have the same dollar value on the day the divorce settlement is finalized, they are equal. What they don’t know is that these pieces of property may have a different appreciation or depreciation rates.
Also, such properties may have tax implications. You must note that even when two assets have the same value at the time of evaluation, taxes may make that piece of property worth less or more than it is.
Splitting assets 50/50
This may be surprising, but splitting property in half is not always fair. Consider factors such as liquidity of the assets; some may be more liquid than others. In addition, consider how assets are being taxed and take into account the fact that some properties, such as rental houses, pay ongoing dividends. Each asset has a different value, and over time, these values are bound to change. When splitting assets, you must highlight all these factors before you agree on 50/50.
Divorce is often difficult, but it is even harder to deal with the aftermath of mistakes done when splitting your assets. Remember that your decisions during this period could affect the quality of life you have long after divorce.