A divorce is a difficult and trying time for any married couple. To make it more difficult, several financial issues may appear throughout the process. Understanding the financial issues can make for a more seamless divorce.
In a divorce, it is important to note that your debts do not disappear, according to Forbes. The two of you entered the financial agreements together and hence the debts remain even after the divorce. Even if one partner decides to take the debt, it does not change who is legally responsible. You are both still legally obligated to pay any debts. For some, utilizing financial assets can help with the debts and other expenses.
Financial assets include the following:
- Certificates of deposit
- Savings accounts
- Checking accounts
- Real estate investment trusts
Of course, this is far from an exclusive list. While these assets can help cover a variety of expenses, you also need to keep in mind that assets may have different tax consequences. When splitting assets fairly, you must think about taxes. For instance, if you take the retirement assets and your spouse takes the money-market account of the same value, you will have to pay taxes whereas your spouse will not.
Florida is an equitable distribution state. This means that you divide the property in a way that will give both partners a fair chance at life after divorce. Real estate can include any of your properties. This includes your home, your vacation properties, rental properties, commercial properties and timeshares. For many divorcees, the most difficult property to divide is the family home. More information on divorce is present on our webpage.