It isn’t uncommon for a divorcing couple to have disputes about how their joint assets will be divided. This is generally true even if the divorce is relatively amicable overall. Ideally, you will hire a Washington financial adviser or other professionals to help negotiate a reasonable settlement.
Almost any asset could be subject to division
A family home, money in a retirement account or any other item that is not classified as separate property could be included in a settlement. The value of a pension or other income that may be received at a later date should also be accounted for. In some cases, debts will also be allocated between yourself and your spouse in a divorce decree.
Taxes could erode the value of an asset
Let’s say that you took possession of the family home after ending your marriage. If the home is sold, federal law says that the first $250,000 in profits from the sale are exempt from capital gains taxes. However, if you were to sell stocks or other assets, you may be required to pay capital gains taxes on any appreciation that took place since they were acquired. Therefore, it’s important to calculate an asset’s after-tax value when determining if it makes financial sense to acquire it in a final settlement.
If you are going through a divorce, it is advisable to do so with the help of a legal professional. This may be a good idea even if you plan on settling the matter through mediation or arbitration. An attorney may be able to review an agreement that is reached during a negotiation session or advocate for your interests during settlement talks. Legal counsel may also suggest that you make changes to a proposed agreement before signing it.
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