A divorcing couple will likely face numerous meetings, negotiations and compromises while navigating the process of ending a marriage. From financial decisions centering on spousal support and property division to those involving the children such as parenting time and child custody, the couple must work together to reach compromises that are beneficial to all involved.
Unfortunately, while many aspects of property division are straightforward, there are three factors that can quickly derail a negotiation.
- Debt division: While property division usually entails the couple listing their marital assets and reaching an equitable split, the division of debt responsibility can be a challenging factor. From a car loan that contains the names of both spouses to shared credit cards, couples will likely amass thousands of dollars of debt during the marriage. This debt must be evaluated and divided as part of the overall financial picture.
- Digital assets: In the last decade, couples have started relying more and more on digital property rather than physical assets. These online assets can be anything from movie collections and music libraries to digital storefronts and cryptocurrencies. Digital assets can be challenging to value, but once a valuation is reached, they must be divided along with other property.
- Intangible assets: Over the course of the marriage, the couple will likely amass funds that aren’t always readily accessible. It might be difficult to accurately divide this type of property. Things like deferred compensation and retirement accounts must be carefully evaluated and included in the overall property division.
It is important to note every marital asset and debt so they can be included in the total property division process. It might seem cumbersome, but it is better to address them all at once than to have to revise the agreement later.