Should you liquidate or split complex assets in divorce?

Should you liquidate or split complex assets in divorce?

| Oct 7, 2019 | Property Division

Property division isn’t always easy in divorce, even if you and your spouse agree to a 50-50 split under California’s community property laws. Dividing your property may be a complicated process, especially if you have stocks, real estate or other assets that appreciate and depreciate over time.

When you’re determining how you want to divide your property, you don’t just want to think about the current value. If you do, then you might not consider how much a home could be worth in the future or the losses you might suffer by accepting stock in lieu of other assets. You want to review all your marital assets and determine the best path toward future financial security.

How can you make the best financial choices during your divorce?

It’s a smart idea to start by getting the current values of your assets. Things like stocks or retirement accounts might waiver, but you can get a general idea of their worth at the present time.

After that, you should sit down and talk to your spouse. With assets like stocks, you might opt to cash out your portion immediately for the current value, or you could choose to accept them as they are and risk longer investments. Similarly, if you want your family home, you might accept the risk of depreciation in the hope of appreciation over time and decide not to sell it immediately.

With complex assets, it can sometimes be better to liquidate them and split the profits. However, what you should do will depend on your knowledge about these assets and the potential for growth. Your attorney can talk to you more about complex assets and how you should handle them during your divorce.

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