The words "divorce" and "loss" are nearly synonymous. During a divorce, you may lose money, time, and relationships, but you may also lose when you fail to increase or preserve the value of marital assets. Here, you'll learn how to protect yourself from unnecessary losses by avoiding costly mistakes.
Failing to Increase or Maintain the Marital Estate’s Value
For most couples, the family's home is the highest-valued marital asset, so it's the one that's most commonly fought over. If a spouse chooses to stay in the home, they may have to pay the other person a portion of the home's fair market value.
The division of marital assets is one of the biggest components of a divorce. While homes often increase in value, other assets, such as vehicles and stocks, bonds, and IRAs, may depreciate. It's important for spouses to fully disclose their assets, whether or not they're separate property, so a divorce attorney can help you equitably divide all accounts and secure your financial future.
Failing to Insure a Support Order
Talk to your divorce attorney about whether it's necessary to secure a spousal support award with a life insurance policy. If you've been required to maintain or purchase a policy to secure such an award, you should learn if there's a way to attain other financial benefits.
Failing to Perform Discovery
Although we assume that our spouses will fulfill their fiduciary responsibilities and disclose all assets, due diligence is still important, and your family law attorney may have to make discovery requests.
Overlooking an asset is a critical error in obtaining your fair share of the marital estate. It's important to know the extent of your family's debts and assets and to make a full inventory of valuable property.
Failing to Assign Debt
Distributing marital debt is just as vital as dividing assets, and it should be done during the proceedings, not afterward. The elimination of debt is a crucial element to consider as you embark on your new journey after a divorce.
Not Considering the Implications of Tax Status Changes
As a newly divorced spouse, you will file your own tax return once the divorce is finalized. Capital gains from a home sale, as well as other marital assets, may affect the amount you're taxed.
Consulting your financial advisor and your family law attorney will help you determine how to best report these gains.
Partner With the Right Lawyer
Divorces bring loss, but that doesn’t mean they always have to be financially devastating. With preparation, diligence, and the right lawyer, a divorce can have a fair and equitable result.
If you need help during your divorce, make sure to call The Law Offices of Jonny Kousa, P.L. Our family law attorney has dedicated his legal career to helping individuals who are going through a divorce. Let us provide you with compassionate and effective counsel.
Contact our firm at (954) 626-8071 for a no-fee consultation to discuss your family law matters.