The decision to divorce is one that isn’t taken lightly. For some, the decisions that have to be made about property division are just as difficult to make. It’s imperative that you take the type of assets into account when you’re trying to split things up.
Some people who are going through a divorce will compromise to ensure that the property gets divided as quickly as possible. Taking an inventory of the things that need to be divided is critical so you know exactly what you have to address.
Major assets, such as the house, retirement accounts and vehicles, are the ones usually at the heart of any contention. In many cases, these are sold or liquidated and the profits are split between the two parties. The other option is for one spouse to buy the other out — either with cash or in trade for other assets.
Some assets, such as the art collection or furniture, might also be difficult to divide, partly because most people don’t want to split up established sets. Valuation of these assets is sometimes necessary before they can be divided. It might be best if each person claims specific sets of assets until everything is divided.
It’s often possible to use marital debts as a way to offset the property division. Sometimes, it’s best to sell assets and pay off all the marital debts as part of the divorce so that both sides have a fresh start when the divorce is finalized. Working closely with someone who’s familiar with these cases can help you assess your options and their potential impact on your future.