Divorcing couples must address a variety of assets during the divorce process. For many people, financial assets pose the biggest challenge. These are often the most valuable, leading both individuals to focus on them.
There are many types of financial assets, including:
- Cash on hand
- Bank accounts
- Retirement accounts
- Pensions
- Educational accounts
- Stocks and bonds
- Mutual funds
- Certificates of deposit (CD)
- Annuities
- Profit sharing
- Life insurance policy cash values
Some of these financial assets may be extremely valuable, while others are not. Even so, all of them will be a big part of your divorce.
For example, retirement accounts are among the most complicated financial assets to divide. Not only will retirement accounts impact your finances in the future, but they will also affect your tax situation today.
Bank accounts are a common asset that can also pose a variety of problems. It’s easy enough to split the money down the middle and move on from there. However, you have other options, such as using the money to pay off joint debt, such as credit cards and personal loans.
One last thing to consider is that your soon-to-be ex-spouse could be hiding assets from you. While some are easier to track down, such as bank accounts, others, especially cash, pose more of an issue.
Once you decide to divorce, make a list of the many financial assets that will be part of the property division process. With this list guiding you, it’s easier to settle on a strategy as to ensure yourself of obtaining your fair share of assets.
