Splitting up assets in a divorce may not be as clear-cut as Louisiana residents believe at first glance. Before sitting down to negotiate a divorce settlement, each party needs to do some research regarding the assets they intend to split. Certain issues require consideration before property distribution is finalized and takes place. Otherwise, one or both parties could end up with significant financial regrets later.
Everyone hears that their finances may take a hit after a divorce, but most people simply attribute that to the fact that the income that used to support one household now has to support two. However, that is not the whole story. Many assets may appear to be equal on paper, but the reality is much different. For instance, keeping the marital home could be a dire financial mistake after calculating the mortgage loan payments, repairs and maintenance that it may require.
These factors may considerably reduce the actual value of the home. The same could be said for a bank account and retirement account of the same dollar value. If the party keeping the retirement account needs quick access to the cash, it will cost a penalty and some taxes. The party with the bank account does not face the same deductions from the face value of the account.
These are just some of the assets that may be included in the property distribution of a Louisiana couple’s divorce. Other assets require the same attention to determine their actual value in the real world and not just on paper. Each party may require assistance in figuring out what an asset is really worth, and sitting down with a family law attorney may be beneficial.
Source: CNBC, “When it comes to divorce, not all assets are equal“, Sarah O’Brien, Sept. 22, 2017