Navigating your financial situation is one of the more complex factors involved in divorce. Your finances play a major role in the divorce process and can often be a particularly contentious issue. You may be wondering how certain accounts and assets are handled and divided during your divorce.
For many couples, your retirement accounts are the most valuable asset you have. Most people spend years contributing to a 401k, IRA or pension plan to prepare for retirement. However, like other assets, your retirement accounts are considered marital or community property and will be divided during your divorce, depending on what contributions were made during your marriage.
Real estate can be a particularly tricky part of divorce since it is more difficult to split. These assets typically include your marital house, timeshares, commercial or business properties and vacation properties.
There are various ways you can handle this, including deciding to continue to co-own property, selling and dividing the profits or buying one party out of the property. These assets should be carefully considered as they can carry extra negotiation terms such as debts and mortgages along with sentimental value.
Unfortunately, debt is another part of the divorce process that is generally divided. Credit card debt, medical debt and even student loans can be divided during the divorce process if they were acquired during the marriage. A divorce does not terminate financial obligations. This is another type of issue that may need extra care.
These are just a few financial assets that you will need to consider when navigating your divorce and figuring out how to divide your assets and debts. Financial issues are complicated and can cause significant stress, so it can help to consult with a professional when handling these types of assets and liabilities.