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Tips for Dividing Assets During Divorce

When it comes time to begin divorce proceedings assets have a way of disappearing while new debt seems to materialize. It can be difficult to know which direction to go on some issues, but keep the following tips in mind when trying to determine what will work best long-term:

  • It is essential to analyze the marriage as if it were a financial contract.

  • As a rule of thumb, if the benefit is guaranteed then it will probably be included as an asset or as income.

  • Personal property is important but don’t spend thousands of dollars fighting over property that has more sentimental value than real value.

  • As a general rule any debt associated with an asset should travel with it.

  • An area where most people miss is cash withdrawals. You should be able to account for where that money was spent.

  • If you wish to keep your home, make sure you can not only afford the mortgage but the carrying costs as well.

  • If only one spouse is obligated on the debt during the marriage then the other spouse cannot be held liable.

  • There are often taxes and penalties associated with withdrawing money from retirement accounts. These assets should only be used as a last resort.

  • If you want to ensure that you divorce agreement reflects your goals and doesn’t cost you an arm and a leg, stay involved in the process.

  • You should be aware that there is more than one way to value a pension and that a pension can be worth more than a house.

  • In regards to life insurance, if the non-insured spouse is supposed to be the beneficiary then the best way to protect his or her interest is to have the non-insured spouse own the policy.

Each decision has a set of variables such as tax implications that can be costly if not properly assessed on the front end. At New Path Planning, we can help educate, empathize, as well as project out 5, 10, or even 20 years to show what the effect your decisions today will have on your future. Schedule your initial consultation today.


Investment advisory services are offered through Asset Dedication, LLC, an SEC registered investment advisory firm. Kristi Tidwell is an investment advisor representative of Asset Dedication, LLC. Branning Wealth Management, LLC and Asset Dedication, LLC are not affiliated companies. Please read our Disclosures for full details.

2020 by New Path Planning, LLC