When going through a divorce, a common complication is how to split the marital property. Couples may argue about properties, gifts received, and even the family pet.
Some assets, particularly those of higher value, create serious conflict in a divorce settlement. Identifying these assets early on can mitigate escalations so the couple can reach an agreeable solution for both sides.
Real estate property
Many couples in Naperville and Joliet own joint real estate, and problems often arise when they disagree on each person’s fair share of the property. Dividing a summer beach house or a mountain cabin can prove difficult. Another common problem with real estate property is deciding on the valuation of a property that will be divided between the couple.
Businesses can be worth thousands of dollars since a professional practice is a high-value asset and a source of a consistent income stream. Spouses often argue over the ownership of a professional practice or how to split it.
Art collections are complex, high-value assets, and ownership is part of a couple’s marital property. Determining how much the collection is worth at the time of the divorce may be difficult since the market value of art continuously changes. The services of an expert appraiser may be necessary, and while previous appraisals can be applied, having a recent assessment around the time of the divorce will avoid complications.
Saving for retirement is common among working professionals, with accounts that accrue value over many decades. Disputes over how to divide retirement savings are common in divorces after a lengthy marriage. Couples often disagree on how to split retirement assets and what each person is entitled to keep at the end of a marriage.
Complications with high asset divorces may include the issue of commingling. In this scenario, the boundary between marital and separate property is blurred. For example, one spouse may use a personal savings account to finance the renovation of a marital property. This situation can complicate the fair division of assets during a divorce proceeding.
During a divorce, the first step toward avoiding asset conflicts is identifying those with the highest risk for disputes. Having a clear understanding of how these assets will be divided early on will make the divorce procedure smoother and more straightforward.