In Divorce, Not All Assets Are Created Equal
As highlighted by this CNBC coverage, taking financial missteps during divorce can leave you in bad shape, especially if you and your ex’s finances are closely intertwined. It is crucial that you understand the implications of all the financial decisions being made, even if you are working with an attorney and/or financial advisor. Below, we discuss some of the mistakes you’ll want to ensure that you avoid: The Family Home & Liquid Assets Many people going through divorce think about whether they should keep the family home for the sake of their kids and providing consistency and routine. However, it is important to note that the mortgage that you could once afford with two incomes may no longer be sustainable to stay in. In addition, if you are offered the family home in exchange for your ex obtaining particular investments (such as the brokerage count or retirement savings), remember how costly keeping the house could be. It may not behoove you to take that trade. Taxes Are Relative Remember that some things are taxed (such as income from the 401k) and some are not (such as the checking account, and keep this in mind when dividing up assets. 401(k) Plans Remember that in order to obtain a share of your former spouse’s 401(k) plan, you first have to get a Qualified Domestic Relations Order (QDRO) from the court. By doing so, you avoid paying a penalty for withdrawing funds from it early, however, you will still need to place it into an individual retirement account within 60 days to avoid paying income tax. Alimony & Life Insurance If you rely on child support and/or spousal support, consider taking out life insurance on your former spouse in case of their death. With you listed as the owner and beneficiary on the policy, it could serve as potential protection against the loss of vital income. Consult With an Experienced Florida Divorce Attorney Remember that in Florida, marital property is divided equitably, and this includes assets that were acquired during the marriage, unless it was specifically set aside as separate property pursuant to a pre-or postnuptial agreement. This includes retirement funds, insurance policies, pensions, and other assets acquired during the marriage, but not inheritance and gifts specifically given to one party only. Consulting with an experienced attorney is wise at all stages of divorce, even in the very early stages. Your attorney can help you plan out what properties and assets will remain separate during marriage and help you ensure that you are on the right track in managing your assets to set them aside as separate property. If you or a loved one has any questions about divorce, contact our experienced divorce and family law attorneys at HD Law Partners in Orlando, Tampa or Sarasota. We will ensure that you remain protected, regardless of your particular circumstances. Resource: cnbc.com/2017/09/21/when-it-comes-to-divorce-not-all-assets-are-equal.html Tags: Florida Divorce and Family Attorneys, Florida Divorce Attorney, Florida Property Distribution Posted in Divorce | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us