Liquidating Assets in a Divorce
Of all the issues that must be dealt with in a divorce, a couple’s finances are among the most difficult. When it comes to money, both partners want to make sure they get what they deserve. In some cases, couples need to consider liquidating assets in a divorce. This may be done in order to obtain money, which can be more easily distributed than physical items.
Inventory Your Assets and Determine Value
The first thing to do when beginning the divorce process is to take stock of what you own. Keep in mind that in Arizona, any property or assets that you purchased while you were married is considered marital property with few exceptions. Marital property belongs to both parties, and must be distributed equitably in a divorce. Once you know all of your assets, you must determine their current value. This may require some research. In some instances, appraisals must be completed.
Consequences of Liquidating Your Assets
There are some consequences of liquidating your assets. One of the most serious is that you must pay taxes on the money you get when you sell your property. This means that you’ll actually receive less than the value of the assets. Some assets can be difficult to sell. They may require you to pay auction house or other fees. Additionally, some of your items may be valued at less than they are worth because the market for them fluctuates.
Consider the Long-Term Impact of Liquidation
Selling your items may seem like a viable solution at the time, but it could have a negative impact on your long-term finances. Some items, such as land, houses, stocks, and artwork, are purchased with the intent of keeping them for a long period of time. Their value is intended to increase so that you have additional funds available when you need them, such as when you retire. When you liquidate your assets you will lose their future value. You will need to evaluate your options given your current, and your future needs.
Dividing Property between Spouses in a Divorce
In many instances, liquidation should only be done when there are no other viable options for a couple. When distributing assets, couples should review the value of them so they can create an equitable resolution. However, it is important to note that couples may need to liquidate if most of their assets are tied up in property. A qualified attorney will review your situation to help you determine how best to proceed.
Contact the experienced lawyers at Udall Shumway PLC to schedule a consultation today.
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Liquidating Assets, or other family law issues, please feel free to contact 480.461.5300, log on to udallshumway.com, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.