The financial unknowns that occur after divorce can lead to a lot of stress. Virginia couples who are splitting up can help alleviate some of the anxiety they may be experiencing by getting a clear picture of their financial accounts. This includes their liabilities, expenses, income and assets.
Savings accounts, cash, stocks, checking accounts, mutual funds, savings bonds, money-market accounts and real estate investment trusts are all different types of financial assets that couples may have. For unemployed partners or those with low incomes, these assets may be particularly important as they can be helpful in covering living expenses.
It is wise to remember that not all assets will receive the same type of tax treatment. For retirement assets, income taxes have to be paid on any distributions that are received. Depending on the situation, there may also be a penalty on top of the income tax.
It is prudent for divorcing individuals to determine how their defined-benefit plans are to be divided. This is typically specified by stipulating a percentage of the retirement benefit that will be awarded to the other spouse. Another important detail that has to be specified is if survivor’s benefits will still be designated to go to the ex.
Real estate is another important asset that commonly has to be divided in a divorce. Such properties may include timeshares, vacation homes, rentals, marital houses or business offices.
A divorce attorney may work to protect the rights and interests of clients as they pursue resolutions to disputes regarding financial assets. The attorney could litigate to obtain favorable division terms for financial assets. In some cases, negotiation may be used to address financial disputes during a divorce.