Dividing marital property is a key part of the divorce process. Property division can pose added challenges to some couples in Pennsylvania, though. Those who have significant financial assets may need to consider the future worth of certain assets or possible tax implications of splitting up an account or investment. A high asset divorce may have other important financial issues to keep an eye out for, too.
Dividing financial assets
When discussing marital assets, people’s minds often jump to physical assets like the house, vehicles or furniture. Financial assets are just as important, though, and are divided just like physical properties. However, there may be tax consequences for certain assets, so taking money from a retirement account might end up being less than what one was expecting following taxes and penalties. Additional examples of financial assets include:
- Savings accounts
Unfortunately, living with at least some amount of debt is standard for most people. This debt does not disappear with divorce and must be divided like any other asset. It can be helpful to close out accounts when possible and refinance in one’s own name during this process. Debt collectors do not refer to divorce agreements when coming after missed payments, so that is something else to keep in mind.
Although a high asset divorce may have unique hurdles, it does not have to drag on endlessly. Pennsylvania couples who are dedicated to creating the best possible divorce settlement may be able to utilize alternative dispute resolutions like arbitration or mediation to do so. Those who do choose this path often seek guidance from an experienced attorney as well, as it can be helpful to have a knowledgeable advocate on one’s side.