Property division is rarely a straightforward process. As such, it is understandable if you are unsure of where to start. Determining how you’ll prioritize which assets to fight for, which to let go of and which you will “take or leave” depending on how negotiations progress can help you to strategize more effectively as your situation evolves.
Every divorce is different, just as every couple’s marital estate is unique. The following priorities may or may not be right for you. But, by considering how each of these potentially consequential assets will factor into your property division strategy, you’ll be better positioned to manage the process effectively overall.
Liquid assets
Liquid assets, including cash, savings accounts and investment accounts, can provide you with immediate financial stability and flexibility. These assets may be able to help you cover daily living expenses, legal fees and any unforeseen costs during and after the divorce process. Prioritizing liquid assets can help to better ensure that you have the financial resources necessary to navigate the transition period.
Primary residence
A family home often holds significant sentimental and financial value for those who live there. Deciding whether to keep or sell your primary residence is, therefore, a deeply personal concern. However, it must be a practical endeavor as well. If you have children, maintaining stability by keeping the home might be beneficial. However, you’ll need to work to ensure that you can afford the mortgage, maintenance and property taxes on a single income before committing to fighting for this asset.
Retirement accounts
Retirement accounts, including 401(k)s, IRAs and pensions, may be important for your long-term financial security. These assets are often among the most financially significant in a marital estate. Depending on your age and circumstances, prioritizing a fair portion of these accounts may help you to safeguard your financial future post-retirement.
Personal property and sentimental items
Personal property, including your car, certain pieces of furniture, household items and sentimental assets should also be considered. Depending on how your ex feels about various items, it may be easier to negotiate for these items by trading them for other assets of comparable value than simply demanding to keep them and revving up tensions accordingly.
At the end of the day, prioritizing assets thoughtfully during property division will not guarantee a favorable outcome, but it will help to better ensure that you benefit from one.