The unfortunate reality about a marital separation is that, sooner or later, the question of asset division will have to be broached. For Connecticut residents who have experienced divorce, this can often be the most frustrating part of a divorce proceeding outside of child custody. However, there are ways to come to the negotiation table with a degree of preparedness, which can help smooth the process for all involved.
Assessing both assets and liabilities for both individuals can be a helpful starting place for any top-down understanding of a larger financial picture. Determining what assets and property will be considered marital versus what will revert to individual ownership as premarital property can clear a lot of the red tape out of the way right out of the starting gate. In this way, both individuals will have a firm handle on what is theirs and what will need to be divided.
With this in mind, it will be important to make certain decisions about mutually owned property, particularly larger-ticket items like a family home. Some individuals choose to sell mutual property and divide the profits evenly, but this can bring up additional questions about paying taxes, insurance and other costs associated with home or vehicle ownership. It can be important to address these issues early on to avoid confusion later.
The emotional cost of divorce is often a primary concern in the minds of those going through the process, but the nature of the financial issues associated with a marital dissolution can have long-lasting implications for both individuals. Connecticut residents who are in the process of preparing for a divorce may benefit from the above suggestions prior to approaching the negotiation table. Limiting the potential for complications can help bring the filing to an end quickly and equitably.
Source: investopedia.com, “How To Manage Your Finances Through A Divorce”, Leslie Kramer, May 16, 2014