Although it’s likely one of the more tedious parts of divorce, property division is the component of divorce that is strongly tied to how a person is able to progress financially after the divorce. What a person leaves a marriage with will play a key role in their standard of living in the future.
In a high-asset divorce, property division can entail anything from retirement accounts to vacation homes and even family businesses. A divorce lawyer can help a client divide these assets in a way that will benefit them in the future.
One thing a divorcee should keep in mind is the liquidity of the assets they want. When we speak of liquidity, we mean the ability to convert an asset to cash. Although it might seem like a good idea to keep the house or the family business, it may not lead to actual cash flow when it’s time to sell. At the same time, the other spouse may receive assets such as retirement accounts and savings accounts that are a lot more liquid.
Discussing these issues with your lawyer is a good idea because the last thing a divorcee wants is to be left with few liquid assets post divorce. This may be especially true if child support payments or alimony runs out, forcing the homeowner to sell their home quickly due to an inability to pay the mortgage. A lawyer can help an individual make sure that the assets they receive in the divorce are balanced in their liquidity.
Source: The Wall Street Journal, “Don’t Let a Divorce Leave You Illiquid,” Ted Jenkin, April 18, 2014