When thinking about which marital assets one spouse may particularly want when such assets are being divided in a divorce, attention should be paid to the benefits of each asset. It is also important to remember that, in addition to benefits, some types of property can also have burdens connected to them.
Failing to take such burdens into account when navigating property division issues in a divorce could lead to a person being in a much more difficult financial situation than they have to be following a divorce. It could result in them ending up with a share of the marital property that has more burdens than they can reasonably handle.
Examples of burdens on some types of property include:
- Tax burdens: Some assets can trigger significant tax implications or liabilities.
- Illiquidity: Certain types of property, like homes, can be very hard to quickly sell at full value. Having the bulk of one’s worth tied up in such assets can pose problems when the need for quick access to cash comes up. Costs of sale can deplete the cash value of the property as well.
- Maintenance costs: Houses and certain other assets have upkeep and maintenance expenses associated with them. These expenses can sometimes get quite high.
So, burdens are among the things it can be important to consider when thinking about what assets are (and are not) going to be a priority for a spouse in property division negotiations in a divorce.
As discussed above, how informed a divorcing person is during the property division process could have major implications for their future. This includes how informed they are on what things it is important to do, and avoid doing, during the various legal steps of this process. Divorcing individuals can seek out help in staying properly informed on critical issues in their divorce from an experienced Board-Certified Family Law expert divorce lawyer.
Source: CNBC, “When it comes to divorce, not all assets are equal,” Sarah O”Brien, Sept. 22, 2017