As you go through the divorce process, you may find that dividing up your assets is one of the more challenging parts of your divorce. Florida is an equitable distribution state, meaning that marital property will be distributed between the spouses in a fair and equitable way. However, this does not necessarily mean that everything will be split 50-50.
What to keep in mind
If you are starting the property division process, here are a few things to consider:
- Assets with the same value now, may be worth different amounts in the long run. This is particularly true for stocks and assets that are taxable, such as 401(k) accounts.
- Qualified domestic relations orders (QDROs), in addition to the divorce decree, can be the best way to divide up a 401(k) or other retirement account between divorcing spouses. The QDRO can allow for a trustee-to-trustee transfer to a rollover IRA or allow one spouse to receive funds from the 401(k) itself.
- Determine the cost basis of each asset and as well as how it will be taxed as soon as possible during the divorce.
- If one spouse will no longer be a joint owner of your family home, you may need to refinance the loan in the name of the remaining spouse. An appraisal is beneficial to value to the property and figure out the cost basis of the property.
Do not hesitate to seek help
The marital property division can be complicated, but it may be beneficial to consult with a family law attorney in your area as soon as possible. If you and your spouse, with the help of your respective attorneys, can handle your issues during mediation, you can avoid going to court altogether.