Divorce

Important Division of Assets Considerations

By January 10, 2018 February 18th, 2020 No Comments

Now that you’ve decided to divorce, it’s time to make a plan for what happens to your shared assets. For example, do you plan to sell the shared home, or wish to keep it for yourself? If you and your spouse own a business together, will you continue working together? In this post, we’ll outline what you need to consider before heading to mediation or court.

The Family Home

Shared living space is usually a point of contention in a divorce case. Some people are averse to the idea of having to leave the home they’ve built, whereas others are eager to start anew.

If you plan to advocate for sole ownership, you need to take a careful look at your finances and determine if you can feasibly pay the mortgage on your own. It just doesn’t make sense to put your financial health in jeopardy once you become a single-income household.

If you are okay with leaving, we can help you determine your exit strategy. Do you want to sell the property and get half of the sale? Do you want a lump sum from your ex if they assume the full title and mortgage?

The Family-Owned Business

If you and your partner are also partners in business, it’s crucial that you think carefully about what happens next. Do you want to retain the business on your own and buy out your ex, or vice versa? If so, you’ll both want to have appraisers value the business against your investment.

If you plan to continue working together in some capacity, we will undoubtedly want to draft an employment agreement that states acceptable workplace behavior, plans for dispute resolution, non-solicitation, and other prudent professional matters. It’s best to plan for the worst, even if it seems unlikely now.

General Finances & Other Assets

One essential aspect of divorce many people overlook is how splitting shared finances will impact other areas of their lives, including:

  • Taxes
  • Healthcare
  • Retirement benefits & social security status
  • Stocks & other investments
  • Credit & debt

The choices you make regarding property and commercial endeavors often have reverberating effects that seep into other areas of your life. For example, if your spouse’s employer covers your insurance, can you afford to secure your own coverage? Do you have good enough credit to apply for a mortgage on your own?

Here to Help

We understand that this is a lot to take in, but you don’t need to figure all of these things out for yourself. John L. Davis, PLLC approaches divorce cases from a holistic perspective, combining business lawreal estate law, and family law under one umbrella. We’ll help you tackle all aspects of divorce one step at a time. Contact our Vancouver office today at (360) 597-4740 to get started with an experienced attorney.