Georgia couples who are getting ready to undergo the property division process of their divorce have many unknowns. Unfortunately, many people make mistakes that they end up paying for even years after their divorce decree is finalized. To help you avoid these mistakes, some are clearly explained below. You should learn from them.
Assets of the same value aren’t always the same
As you undergo the property division process, you’ll need to evaluate all of your marital assets. One common mistake that people fall into is thinking that just because two assets have the same value, they’re equal. That’s not the case for specific assets like retirement accounts. For example, let’s say your marital assets include a Roth IRA and a traditional IRA, both valued at $50,000. They may have equal value on the surface, but the person who ends up with the traditional IRA will have to pay more in taxes to use their retirement funds.
Leaving your name on a liability
One common mistake that couples make when sorting out their marital property is leaving a partner’s name on a loan when the other partner is the one who is now responsible for it. For example, let’s say the family mortgage is in the name of both spouses but the family law court decides that one partner will be given the family home along with its mortgage. It’s important for the spouse who will not retain ownership of the house to have their name taken off of the mortgage loan. This can be done by refinancing the mortgage under the name of the spouse who retains the property.
Property division is a necessary aspect of all divorces. While many couples have the best of intentions for dividing up assets evenly, they sometimes make mistakes. Two of the most common mistakes are outlined above, and you’ll want to avoid them in your property division process.