Divorce can be emotionally overwhelming, and the intense emotions often experienced during the process, as some Illinois residents will find, can cloud their views of finances. But keeping the focus on these finances is important to negotiate a fair divorce settlement. In many cases, you might consult a financial professional to help you understand each asset and how its value might be affected by a variety of factors.
Assets should be looked at closely
Patiently reviewing each asset when preparing for divorce negotiations will help you plan your negotiation strategy. It also helps if you are aware of how the value of these assets might change if you sell them or transfer them. Some of the assets you might need to look at closely include:
- The family home
- Joint business ventures
- Retirement accounts
Learn about the true value of assets
While some assets might appear to be worth the same, there are many details that can affect the true value of each asset, particularly over time. During the negotiations at the end of a marriage, it is important to look at these details, such as tax implications if an asset is sold, to ensure that you are getting a fair settlement. In a similar manner, the type of asset you are looking at could also affect its true value, such as when dealing with cash versus stocks.
Retirement accounts can be tricky to divide
When it comes to retirement accounts, not following the rules set up for each type of account might cost you. For example, there are tax implications as well as early withdrawal penalties that can be applied. In addition, for 401k accounts, you might need a qualified domestic relations order that states how funds will be divided for each account to avoid penalties.