3 concerns to keep in mind during property division

On Behalf of | May 9, 2024 | Divorce

Going through a divorce is a major event in a person’s life. It’s critical that anyone who’s in this position takes the time to plan logically. Any emotional decision-making that’s part of the process can lead to decisions that might not be in the person’s best interests.

Thankfully, there are a few tips that those who are divorcing can use to their advantage in this regard. Keeping the following in mind can help anyone to “stay on track,” even when emotions escalate.

Set a realistic budget

Setting a budget after divorce is one of the most important financial steps a person should take when a marriage is ending. The budget should be based solely on the person’s income. Even if child support or spousal support are part of the divorce, it may be a good idea to leave that out of the budget. Once the budget is set, the person can determine what assets they can actually afford. While this might be a challenging realization, it’s one that’s critical to make.

Debts must be included in the division

Debts must be divided along with the assets. In some cases, people who are going through a divorce will liquidate some assets to pay off debts. This gives both parties a fresh financial start after the marriage legally ends.

When assets can’t be liquidated to pay off debts, the debts will be divided. Creditors don’t have to abide by the the property division order, so this means that they can still hold both parties liable for joint debts. This means it’s often best to try to have all debts transferred to individual accounts so the other person won’t be held responsible for those debts if they aren’t paid properly.

Small assets can balance out the division

Many people are so worried about what will happen to the bigger assets that they forget about how important the smaller ones are. These small assets may be very valuable because they’re often less costly to maintain and a bit easier to liquidate if necessary.

The property division process is one that’s often complex. Working with a legal representative who can assist with determining how to best safeguard an individual’s best interests – even when the going gets tough – is generally wise.