There is one thing all people filing for divorce can agree. It is almost impossible for both parties to agree on how to properly divide a couple’s marital assets. It is perhaps the most glaring factor that can bring out the ugliness of divorce along with child custody. If you have significant assets and property in Utah, it is vital to have an experienced and knowledgeable Salt Lake City divorce attorney on your side. But what factors go into determining who gets the house, the couple’s investment portfolio, and bank accounts? Today, we will examine the most common mistakes made by people when it comes to assets and property during a divorce.
You could have the best team of financial advisors and divorce attorneys in Salt Lake City on your side. However, it is also important for each person filing for divorce to be their best advocate. Keeping detailed and organized records makes only improves your standing and help your attorney and financial advisors do their job. There are also several pitfalls to avoid. Here are some of the most common mistakes made by people filing for divorce in Utah.
Holding on to Property You Can No Longer Afford
We have all heard the phrase, “Your home is your castle” But it is not quite that simple during a divorce. One of the biggest mistakes many people make is trying to keep a house they can no longer afford. It can cause many people to fall into overwhelming debt.
Exchanging Your Home for Liquid Assets
Another common mistake is to exchange your property for comparably valued investments, such as a bank, brokerage, and retirement accounts. Although they may be close to equal in value, the property will be far more costly to maintain.
Failing to Consider Tax Consequences
When it comes to divorce, not all assets are equal. The same goes for the taxation of financial accounts. For example, if you get a 401 (k) account worth $130,000 and your spouse gets a checking account worth the same amount, you are far worse off. Taking money out of a checking account will not incur tax. However, if you withdraw any money from your 401 (k), it will be taxed as regular income.
Failing to Obtain a Court Order to Get Your Share of the 401 (k)
Chances are you have worked hard to earn a nest egg for the future. But it is also important to remember your spouse may also have a 401 (k). To get your share, you must obtain a qualified domestic relations order. It is one of the few times you will not have to pay a 10 percent early withdrawal penalty when taking out money from a 401 (k)
A Salt Lake City Divorce Attorney Can Help
The division of assets and property is one of the most complex and heavily contested components of a divorce. It is vital to have an experienced and knowledgeable legal professional on your side to achieve the best possible results. Over the years, Salt Lake City divorce attorney Christopher M. Ault has successfully helped many clients when it comes to the division of property and assets. He and the legal team utilize a personable and comprehensive approach to help place clients in the best position to succeed. To learn more, contact The Ault Firm, P.C. today and schedule your initial consultation to discuss your case.