What should spouses consider during the property division process?

People who are married often accumulate assets and debts throughout their marriage. If they decide to end their marriage, they then have to go through the process of splitting everything up.

Some people go into the marriage with a prenuptial agreement in place. Others execute a postnup after they’re married. If that’s the case, property division will follow the guidelines set in that document. Without a prenup or postnup in place, there are several considerations that must be factored into the property division process.

Get an accurate valuation of assets

Accurately valuing all assets is essential for a fair division. This includes all marital assets, such as real property, retirement accounts, personal property and investments. Some of these assets may need to be appraised by a professional so the true value that should be considered during divorce is known.

Without accurate valuations, one party might end up with less than their fair share. A neutral third party should be brought in for the valuation so that neither party has an advantage that may manifest if they use a personal contact to handle the valuation.

Consider long-term implications

The long-term financial effects of keeping specific assets is one of the most important considerations in a divorce. While keeping an asset, such as the family home, might seem like a priority, it may not be worth it if the long-term expense of the asset will lead to financial strain in the future.

Similarly, while retirement accounts may be less liquid than other assets, they can be critical for long-term financial security. Considering immediate needs and balancing those out with future financial stability can be beneficial.

It may help individuals who are navigating this process to sit down and create a realistic budget so they have an idea of what they’ll be able to afford based on their own income. Once that’s done, it may become clear what assets they should fight for and what should be bypassed.

Divorce is often a highly emotional process. People who are in the midst of it should have a legal representative who can help to protect their rights and help them to learn about their options so that they can make informed decisions as their circumstances evolve.