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A property division dispute is often the lengthiest, most combative part of a divorce (especially when the divorcees don't share children). The outcome of your property division case can severely impact your financial and emotional well-being, setting the tone for your life post-divorce.
Today, we're covering common mistakes people make during the property division process so you can work towards a more favorable resolution in your property division case.
Asset Division Mistakes You Can't Afford to Make
If you're going through a property division case in California, you can't afford to make the following mistakes:
- Failing to take taxes into account. If you don't figure out how your divorce and the division of assets and liabilities in your case can impact your taxes, you might be in for a nasty surprise come tax season. For example, if you're selling your house, will you have to pay a capital gains tax? Work with an accountant to understand how your divorce will affect your taxes moving forward.
- Underestimating post-divorce expenses. Post-divorce, most people have to spend a significant amount of capital on items such as a new place to live, a new vehicle, new furnishings, etc. You might need to liquidate more assets than you think to be comfortable post-divorce.
- Keeping things you don't need. This can even apply to assets like the marital home—do you live in a good real estate market? Will you want to move to a better location for your career in the future? Will the house be a good investment for any children you have? Selling assets you're attached to can be difficult, but it can also give you the fresh start you probably need after a divorce.
- Not understanding the value of different assets. For example, if you have two thousand dollars in cash, you have two thousand real dollars. On the other hand, two thousand dollars in a taxable retirement or investment account might be worth much less after taxes and withdrawal. You should work with a financial professional to ensure that you're valuing all your assets accurately.
Avoiding these mistakes can enable you to make wiser decisions during your property division case and navigate the property division process confidently.
If you're searching for an experienced property division attorney, look no further.
To arrange a consultation with one of our lawyers, contact us online or via phone at (949) 229-8546.