How To Avoid Trouble in High Asset Property Division Cases

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As many Georgians know, divorce is one of the most unexpected occurrences in a marriage as well as one of the most financially perilous events in a person's life. Dividing assets can be simple and quick if only a few properties are involved, but high-asset divorce cases can have incredibly complicated property divisions because they typically include a wide array of assets, retirement plan funds and investment accounts.

The first step when dealing with high-asset divorces is to get a clear picture of the finances at stake. Both spouses should develop a list of all brokerage accounts, savings and checking accounts, stocks and bonds and any other financial account or deposit to ensure fair division. They should not forget about employment benefits and insurance policies, both of which can be sources of income.

Both spouses should be aware that transferring assets from one spouse to the other can have tax implications. In addition, they should be aware of the effects of taxes on property and assets so that they do not agree on a settlement that could cause problems months or even years later.

When it comes to dividing retirement accounts, spouses can choose to walk away with their own 401(k)s and IRAs. They can also transfer some assets to their spouses as part of the divorce settlement -- transferred assets might not be subject to penalties or immediate taxation.

To ensure fair division of property, spouses can also hire forensic accountants who can help them uncover all assets that should be involved in a settlement.

Any Georgian who is currently undergoing a high-asset divorce should note that the person's case can also be settled using alternative dispute resolution in addition to traditional litigation.

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