Four Property Division Mistakes To Avoid During Divorce
Some terms of divorce are more commonly debated between couples than others, and the division of assets is one of them. According to Florida’s equitable distribution laws, marital assets are divided fairly during the divorce process, and that does not always mean they are divided equally. There is a lot of room for error in the property division process and if you are not careful, you could lose out on the fair settlement you deserve. To ensure that does not happen to you, avoid making the four biggest property division mistakes below.
Failing to Set Appropriate Goals
Stories of spouses that fought tooth and nail for a small insignificant asset just to spite their spouse are not uncommon, but it is not the way to approach property division matters. It is better to focus your efforts on fighting for the assets that really are most important to you, and to set those goals early on in the process. Stand firm on the issues that are most important to you, but make sure it is because you want them and not solely because you want to keep them from your spouse.
Evaluate Assets at Face Value
During the divorce process, all marital assets are given a value. When two assets are given the same value, it is easy to assume that they are equal, but that is not always the case. For example, you and your spouse may both have a right to a traditional IRA and a Roth IRA. They may each have a value of $100,000. At face value, it seems as though both accounts are equal in value, but that is not true. If you agree to keep the traditional IRA and relinquish the Roth IRA to your spouse, you will end up paying more in taxes, leaving you less for your retirement.
Keeping Your Name on Liabilities
While your marital assets are divided during the divorce process, so too, are your liabilities, such as your marital debt. You can reach an agreement with your spouse about how to divide the debt, or a court can decide for you. Regardless of which route you take, it is critical that you remove your name from any debt your spouse is considered liable for after the divorce.
Creditors do not care about divorce decrees and if your name is still on a debt, they can still try to collect it from you. Likewise, if your spouse keeps an asset, such as a vehicle, after a divorce and it is under your name also, remove your name from the account. Otherwise, the lender can still come after you for payments.
Not Working with a Family Lawyer in Orlando
Although there are many potential mistakes that can be made during the property division process, our Orlando family lawyers at Anderson & Ferrin can help you avoid them. Our knowledgeable attorneys will listen to your goals and negotiate with the other side to help you secure the best settlement possible. Call us today at 407-412-7041 or contact us online to schedule a free consultation.