The nation’s capital may be smaller than any state but still sees its fair share of divorces with an average of 2.9 out of every 1,000 people getting divorced, according to 2011 data released by the Center for Disease Control. That means that every day there are people that must determine how to divide marital assets and liabilities in light of the end of a marriage.
The very nature of a divorce can be sad for all involved but when proper processes are not followed, the impact can grow in the form of lost assets. Taking care to follow some basic advice and steps will help to prevent such unnecessary losses.
Let percentages be your guide
If you and your almost-former-spouse are determining who will get what portion of a particular asset, you should always stipulate the split in terms of the percent of that asset’s value each party will receive. Never identify specific dollar and cent amounts as this can lead to serious loss for one or both parties.
For illustration’s sake, imagine you are dividing a retirement account that has a value today of $120,000 and you agree that each person will take $60,000 from that account. Because the value of a retirement account is subject to change, this could put someone at risk. If on the day that the transfer of funds is supposed to take place, the account’s value has dropped, somebody will be left with less than the intended amount.
If you’ve been affected by any of the items in this article please visit our Divorce & Separation page for more information
Read the original article via Prevent losses when dividing assets in a divorce – Press Release – Digital Journal.