ROCKVILLE, Maryland. While a high-asset divorce brings to mind the thought of people with private jets and property in different states (and certainly there are high-asset couples in this situation), individuals can be facing a high-asset divorce and may not realize it. If you own a home in a state where property values are high, you may be facing a high-asset divorce. If you have a shared retirement account or savings, you may have important questions to ask before you get divorced.
According to Time, women who get divorced are more likely to see their income fall while men who get divorced are more likely to see their incomes increase. However, in terms of wealth, women who are able to keep the family home may ultimately end up better off than women who do not get married. However, if you are thinking of keeping the family home, you’ll need to do the math. Can you afford the mortgage and taxes on your own? Can you handle unexpected expenses with your current income? Alimony may be able to help, but it might not be able to pay for everything. Before setting your mind on keeping the family home, consider your financial situation. Sometimes it’s best to sell the home and use the proceeds to buy a house that is smaller or involves less financial overhead.
When getting divorced, if you and your former spouse share retirement funds, you’ll need to discuss how these will be divided. It is important to divide these assets in accordance with the law. Failure to follow proper procedure can result in early withdrawal penalties or a higher tax bill. Before dividing your retirement accounts, you may want to speak to a divorce lawyer who is familiar with the process. Barkley & Kennedy are divorce lawyers in Rockville, Maryland who work closely with divorcing couples, helping them divide assets like retirement funds and homes.
If you are a high-asset couple getting divorced with unique financial circumstances, it is very important that you take the time to protect your rights. Couples who are divorcing who own their own business, who own stock, who own property in multiple states, or who have complex financial assets, should speak to a lawyer when working on their divorce settlement. You may need to hire a tax specialist or accountant who can help you understand the tax burden of your settlement. Sometimes a settlement looks good on paper—until you look at the potential tax bill.
According to Forbes, high-asset couples may be wise to hire valuation experts to help them understand the value of their assets and therefore make better decisions about how to divide property and other valuables. High-asset couples may also need to consider lifestyle factors when making divorce decisions, as this can play into alimony and child support awards.
If you are getting divorced and have questions about how you’ll divide assets, consider reaching out to Barkley & Kennedy, divorce lawyers in Rockville, Maryland who can help you navigate this process. We can help you understand your rights and assist you with reaching a fair settlement under the law.