It can be emotional when you live in Florida and decide to divorce. It will also impact your assets, children and budget. Determining how to deal with joint finances may be a factor. In this situation, you’ll be required to make tough decisions.
Splitting jointly held assets when getting a divorce
Preparing to split your jointly held assets involves a few different options. First, you’ll need to examine each asset you hold, which might include the following:
• Home
• Automobile
• Household items and furniture
• Collectibles and artwork
• 401(k)
Handling a jointly held home during a divorce
If neither you nor your spouse wants to keep your home, the easy solution is to sell it and divide the proceeds. However, if one of you wants to live there, you need to examine your options. When affordable, a mortgage can be taken over by the spouse who wants to live in it. If this person is you, you’ll need to pay your spouse for any accumulated value they currently own in equity.
Dealing with an automobile
Similar to your home, if neither you nor your spouse wants the automobile, you can sell it and split the difference if you have any equity in the car. Buying out the other spouse is another option if one of you wants to keep the vehicle.
Apportioning a 401(k)
When a 401(k) is involved in a divorce, apportioning it can be tricky. One way to handle this task is by getting a Qualified Domestic Relations Order. It outlines the split of an employer-sponsored retirement plan. Going this route can help avoid taxes and penalties that could develop from an early distribution.
Understanding how assets are split after getting divorced can make the process easier. Once done, you can move on with your life.