A divorce might mean a significant change in financial and physical assets. Divorcees are often confused about what qualifies as an asset and dismayed when they have to give up more than expected. Those who are in the middle of a divorce or predict one in the future can educate themselves on what they can try to protect with the assistance of an attorney.
One of the most valued assets is a house. Typically, one person in a marriage keeps a home while another relocates.
Often two individuals in a marriage start a business and work together. Even if one individual is a sole owner of an enterprise, he or she may have to divide property or accounts receivable.
If an individual loans money to someone and is receiving repayments, then the court considers the payments an asset. It does not matter if the individual’s spouse has nothing to do with the repayment agreement.
4. Credit cards
Divorcing spouses may divide rewards and perks from credit cards such as airline miles, cashback and points. This is often surprising to divorcees, especially if they use their credit cards to buy items and disregard the perks.
Many look forward to their yearly tax rebate. Unfortunately, after a divorce a part of the refund may go to a former spouse and individuals may not be eligible for certain tax credits.
6. Vehicles, RVs and boats
Transportation vehicles are simple to allocate. This is often completed early in the divorce process. Individuals should plan ahead to arrange alternative forms of getting to work and appointments.
7. Furniture and household goods
Individuals may attach sentimental feelings to their belongs. This can make it tricky to divide with peace-of-mind, but it’s possible to find a fair approach.
8. Retirement accounts
New Jersey law may require individuals to divide 401(K) accounts and pensions.
Understanding the eight most common assets in a divorce can help individuals prepare for legal proceedings. Protecting finances and possessions is easier with good planning and legal advice.