As you enter the property division phase of your divorce, you may find yourself wondering which assets you should fight for and which you should let go. It’s hard to give up any marital assets, so this can be a tough determination to make.
However, thoughtful consideration of which assets will best position you for both short and long-term success is key. That’s why in this post we want to look at some of the most often fought over assets to give you some insight into the benefits and risks of taking them on.
The family home
Securing the family home in your divorce can give you and your children a sense of stability and provide a sense that you’ve captured an asset that has a lot of sentimental value. The family home can have a lot of financial value, too, if you and your spouse have built up a lot of equity and made improvements to the residence.
However, the family home can also be costly to retain and maintain when you’re living on your sole income. The mortgage, repairs, and upkeep can all be costly, putting you at risk of falling into a difficult financial position. For that reason, some individuals going through divorce find it beneficial to use the family home as a bargaining chip to acquire other assets or to sell it to provide both you and your spouse cash.
Retirement accounts
Retirement accounts take decades to build. As a result, they’re often quite valuable. That’s why arguing for your fair share of marital retirement accounts is beneficial. After all, you may not have enough working years left to rebuild your retirement accounts if you lose them in your divorce.
Just keep in mind that if you advocate for a larger share of the retirement assets. Be cautious here, as you don’t want to put yourself in a position where you’re struggling to get by in the immediate aftermath of your divorce. One option you may have at your disposal is foregoing spousal support or alimony in exchange for a larger piece of the marriage’s retirement assets. You just have to assess your circumstances and come up with a property division strategy that works best for you and your financial situation.
Vehicles
While vehicles can be a major expense in your monthly budget, they typically have little value for purposes of a divorce. The old adage that a vehicle loses significant value as soon as you drive it off the lot holds true in divorce analysis as well. The value of the vehicle will be the fair market value of the car minus any loan that remains on the vehicle. Because the values decrease so significantly, that value is often less than it is really “worth” to you. But the vehicle is a marital asset, if you got it during the marriage, and the value is considered when the assets are being divided.
In a situation where each spouse has a vehicle, typically you will each keep the one you’re driving. But the values of those vehicles will be included when the assets are being divided. So, it is important to know what the marital and financial value of the car is to determine how it fits into the overall analysis of a “fair” division of assets.
Find an effective divorce strategy that works for you
There are a number of ways to approach your divorce. The specific steps that you take are going to depend upon the circumstances of your marriage and what you hope to get out of the process, as well as your budget and financial situation. Therefore, before heading into your marriage dissolution, be sure to have identified goals and an idea of how you’re going to reach them. That way you have a roadmap to help you navigate the property division process and hopefully secure the fair and favorable outcome that you want.