Division Of Property In Divorce: Common Mistakes to Avoid 

With over 600,000 divorce cases in the US in 2021, it's evident that marriages get broken more often than you think. Sadly, aside from being emotionally charged, the whole process can get overly complicated – especially during the division of property. 

While emotions are high during this major change in your life, you must not let it hinder the process. Here are some common mistakes to avoid during this stage of your divorce: 

Rushing the process  

It's natural to feel the urge to finalize everything quickly. However, if you rush the process of property division, there is a tendency to overlook important details or may unknowingly settle for less than what you really deserve.  

To prevent this from happening, it is best to gather all your financial documents, including bank statements, retirement account statements, and appraisals for any valuable assets. This will give you a clear picture of your financial situation and allow you to negotiate a better settlement. 

Going through it alone 

Property division law can be complicated. Add all the money talks, and everything can be overwhelming. That said, don't hesitate to seek professional guidance from a lawyer specializing in family law. They can explain your rights, help you navigate the legalities of property division, and advocate for your best interests to have a fair property division. 

You can also consider consulting with a financial advisor who can help you understand the long-term financial implications of your decisions, such as potential tax consequences or the impact on your future retirement plans. 

Letting emotions cloud your judgment 

Divorce is an emotional rollercoaster. And that urge to cling to certain possessions for sentimental value is totally natural. But when you're dividing property and assets, you've got to do your best to take a step back and approach it all with a clear head. At the end of the day, your priority has to be long-term financial security and stability – for yourself and any kids or dependents in the picture.  

Sure, holding onto the family home you raised your babies in tugs at the heartstrings. But consider the upkeep costs and whether it's going to bleed you dry moving forward. You need to be brutally honest with yourself about what's a sentimental want versus a realistic need. The goal here is getting to a fair, sustainable place financially for your fresh start. 

Not fully disclosing assets and debts 

Honesty is important, especially when it comes to the division of property during a divorce. This means you must be fully transparent with your spouse and lawyer about all your assets and debts. 

This includes bank accounts, investment accounts, retirement savings, real estate holdings, and any business interests you may have. Hiding certain assets will only create problems down the road and damage the trust needed to reach a fair settlement. 

Misvaluing assets  

Not all assets have the same value. For that reason, achieving a fair division could be challenging. To make sure you and your ex-spouse both get the best value, determine the accurate value of all marital property. This includes your house, cars, boats, jewelry, and any business ventures you co-own. 

This part of the property division needs expert help. So, it would be best to hire qualified appraisers for these assets. They can help you establish a fair market value of all your marital assets and prevent disputes later.  

Not considering financial implications 

Splitting assets can have tax implications. For instance, selling a jointly owned house might trigger capital gains taxes. Therefore, discuss potential tax consequences with your lawyer and financial advisor upfront to avoid any unexpected surprises after the settlement is finalized.  

Aside from tax implications, you may also face loans during the divorce. This was proven by a study that found a 62% rise in divorce loans over the past few years. While this is not advisable, your current financial situation may force you to take that loan. 

If so, you must consider this during the division of property. Make sure you have enough resources to pay off that loan moving forward.  

Miscommunications 

More than 67% of all marriages end due to communication problems, and you don't want to repeat that during the division of property. Otherwise, the whole process could get more complicated. That's why open and honest communication with your soon-to-be ex-spouse is essential. 

While emotions may run high, strive to maintain a respectful and professional tone during negotiations. To prevent all the drama from escalating, consider working with a mediator who can help facilitate communication and guide you toward a mutually agreeable solution. 

Not compromising 

Reaching a fair division of property often involves compromise. Therefore, be prepared to negotiate and find common ground with your spouse. This doesn't mean giving away everything you deserve; it means you must be willing to consider alternative solutions that benefit both parties.

In closing 

Although a divorce presents an opportunity for a new beginning, it doesn't take away the fact that it is challenging. This challenge often escalates during the stage of finding a fair division of your marital properties. But, with everything discussed in this article, you are now aware of the common mistakes to avoid to tackle property division carefully and strategically and set yourself up for a more secure financial future.  

Remember, you are not alone in this process. Seek professional guidance to adhere to property division law, prioritize clear communication, and focus on achieving a fair and sustainable outcome. With time and effort, you can emerge from this chapter and build a brighter financial future for yourself.  

Author Bio

Samantha Wilson is a divorce attorney with years of experience helping clients navigate the complexities of property division. She's passionate about empowering individuals to make informed decisions and achieve fair settlements during this challenging transition. 

References 

1. "Revealing Divorce Statistics In 2024", Source: https://www.forbes.com/advisor/legal/divorce/divorce-statistics/ 
2. "Avoid these mistakes when divvying up assets in a divorce", Source: https://www.cnbc.com/2020/12/10/avoid-these-mistakes-when-splitting-assets-in-a-divorce.html 
3. "Bridging communication gaps in marriage", Source: https://punchng.com/bridging-communication-gaps-in-marriage/