For many couples in CA, financial disagreements and disputes are a leading cause of divorce. This can make the asset division process rather contentious, and this is usually true even for couples who are separating due to reasons that don’t involve finances.
To further complicate things, it can be challenging to assess and agree upon the value of the assets themselves. Many people try ro deliberately downplay the value of certain assets, while other times complex tax or finance laws make this valuation inherently challenging and prone to error.
For today’s post, we’re discussing ways in which you can get a better grip on the finances and come to the true value of the assets and finances that are on the table. After all, it can be hard to guarantee a fair and equitable distribution when you’re working with inaccurate valuations from the beginning.
Start With a Thorough Review of Your Individual and Shared Finances
First, make sure you understand the nature of your finances. Experts recommend that you start thinking about finances even before divorce is formally underway, especially because things can shift rapidly once that discussion is on the table.
Get a thorough understanding of your individual and shared finances, including income, expenses, debt, insurance policies, retirement, real estate, and more. Once you have a complete picture of all the finances, you can then narrow down to the more complex assets whose value may be more challenging to assess.
The True Value of an Asset Is Not Always SImple to Assess
Complexity comes from the fact that not all assets can be measured equally. While cash and some assets can be directly valued based on the amount, assets such as stocks and retirement accounts are more fluid in their true value. In addition, there are significant tax implications with a variety of assets, which further impacts the final value that should be split between you and the ex.
This can also apply to certain types of debt, particularly riskier loans and investments with their own share of tax implications.
Rely on a Team of Technical Experts to Ensure an Equitable and Fair Process
Considering the technical details at play, the best way to protect your interests is to recruit a technical team of professionals who are able to assess your finances and guide you through the process of asset division. You may be tempted to go it alone due to any potential added costs, but an expert is worth his/her weight in gold when it comes to your future financial health. This is especially true in divorces where one or both parties have an especially high number of assets and debts. A financial expert can help you get a complete picture of your finances as well as uncover any attempts to diminish or hide financial assets.
At R & S Law Group, LLP, we are equipped to handle the asset division process, as well as any other facet of your California divorce. Our combined decades of legal experience provides us with the knowledge and real-world experience to deal with any family law matter in CA.
Learn more about how we can help protect your interests during your CA divorce by booking a free initial consultation. Call us at (949) 825-5245 today to schedule a free initial consultation.