Even when state community property laws require a 50-50 split, property division isn’t usually easy when divorcing a spouse.
The process can be complicated, especially when it involves assets that depreciate or appreciate over time, such as real estate or stocks. Additionally, there may be a need for the liquidation of some assets, in order to make a fair split and/or to pay off joint debts.
Liquidating assets should be completed under court supervision and with the assistance of an experienced lawyer, in order to avoid any illegal transfers and to ensure that your financial future is protected.
If you are facing complex property division issues or have questions regarding the liquidation of assets, contact Twyford Law Office to schedule a free consultation with an experienced Spokane liquidation lawyer.
Our firm has successfully represented Washington clients in highly contested divorce matters for more than 40 years.
We offer genuine and compassionate legal guidance that is tailored to your unique goals.
Our significant experience with the liquidation of assets in divorce enables us to help you determine how to best protect your financial future.
What it Means to Liquidate Your Assets
Liquidating assets during divorce essentially means that the parties have agreed to sell community property, then divide the funds they receive in exchange. Though this is not the only option when dividing marital property, as couples can choose how to split or trade their assets. For example, a divorcing couple that owns a home may choose to either liquidate the property by selling and each take half of the profits, or if one spouse would like to keep the house then they can either buy out the other person’s share or trade assets that are equivalent to the home’s value. However, couples are often unable to reach a mutual agreement when it comes to dividing property, in which case the liquidation of assets will be the only choice.
Benefits of Liquidating Assets in a Divorce
Even when a joint account or asset is awarded to one spouse, both individuals are still responsible in name. For instance, if an ex-spouse holds onto a vehicle that is financed under a joint auto loan, both individuals listed on the original loan document are legally responsible for payments. Therefore, if your former spouse misses payments, your credit can be affected. A divorce decree does not remove a spouse from their obligation on a joint loan or credit card, according to the Federal Trade Commission (FTC) Liquidating assets relieves you of any future responsibility and can protect you financially.
Mistakes to Avoid when Liquidating Assets
While in theory, liquidating assets may sound like the simple choice, the complexity easily increases when it comes to intangible assets, such as a 401(k) account. A divorcing couple may be tempted to liquidate a 401(k) in order to pay off debts, make a lump sum payment to one spouse, or to share the funds. Unfortunately, taking this step can lead to a ten percent penalty from the IRS if the parties are younger than 59½, as well as a hefty tax bill the following year. For that reason, it is especially important to hire an experienced lawyer who will be able to assist you in liquidating shared assets and paying off joint debt.
Contact a Divorce Attorney in Spokane
Let us save you time and money while helping bring you peace of mind down the road. Call us at (509) 327 0777 and speak with a knowledgeable liquidation of assets lawyer in a free consultation today.