Your spouse is supposed to disclose all assets that he or she controls during the divorce process. The unfortunate reality, though, is that many people try to hide assets so that they do not have to split them up. Divorce can be bitter, and people do not always play by the rules.
Every divorce is filled with its own unique difficulties. However, when you are divorcing as a person that has a high net-worth or earns a high income, you may feel particularly vulnerable, and afraid that you may be subject to exploitation.
When going through a divorce, no matter whether it is an amicable separation or a turbulent breakup, it can be stressful to start to think about how you are going to divide all of the assets that you have acquired over the years.
As you start the divorce process, you want to make sure that all of the assets are honestly reported to the court. It's the only way to get a fair judgement.
When two people start the process of going through a divorce, their expenses are always going to be intertwined to some extent. However, when they own a business together and need to go through the process of splitting this up, things are inevitably going to be more complicated.
Going through a divorce is usually a very personal and emotional decision to make; however, it will also have hard-hitting financial implications that it is vital to pay attention to. When going through asset division in a divorce, you should keep in mind the tax consequences of any decisions that you make.
Divvying up sentimental items is often what causes the most heated arguments during divorce. Often items in a married couple's possession have priceless value to them, although to a neutral party the value would be negligible. When it comes to art during asset division, it can have both a sentimental value and a very high financial value, especially if one or both spouses are serious about art collecting.
When families have a multitude of important assets such as shared cars and holiday homes, dividing assets in the event of a divorce can be complex. This can also be true for less tangible assets such as stock options, retirement plans and even pieces of art or jewelry that hold sentimental value. More often than not, separating couples come into conflict in regard to who should keep what possessions. In this situation, couples often seek legal guidance and financial advice to help them navigate through this difficult time.
If you and your spouse are going through a separation, then one of the first things you two can benefit from doing is sitting down and making a list of every single asset that the two of you have acquired during your marriage.
One large factor in going through a divorce is making sure that the financial assets are reallocated fairly, and that any tax implications are dealt with properly. This blog will present a brief overview of how divorce and the transfer of assets may affect your taxes.