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Negotiating Property Division
Much of the financial portion of the program is geared toward
negotiating the property division.
We offer here a few general points.
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Agree on valuations. Nicole and Eugene have a small business which
they have to value. They decide to jointly hire an appraiser and
live with whatever that appraiser says. That method is cheaper than
both hiring appraisers, and then having those appraisers fight it
out. Some strategists recommend that you seek high valuations for
those assets your spouse is likely to want and low valuations for
those assets you are likely to want.
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Take easy-to-sell assets. Some strategists suggest that you consider
how easy each asset is to sell. Publicly listed stocks and bonds are
generally very easy to sell. Limited partnership interests are difficult
to sell. Collections may also be difficult to sell, or sell for only
a fraction of their appraised value. In general, you want to get the
easy-to-sell assets.
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Pay attention to tax effects. A number of decisions you make
will have
tax implications
. By paying
attention to those, you can increase the total pie available. Also,
you can avoid being stung by unexpected tax consequences down the
road. This program helps you figure the tax consequences of your
discussions.
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Allocate debts. Debts to parents usually should be repaid, or
assumed by the partner whose parent lent the money.
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Pay credit cards. Credit card debts should usually be repaid
from joint assets. If the debt was incurred during the separation,
it may feel like the "other party's" debt. However, both parties
have to realize that it is expensive to split up the households.
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Disclaimer: We are not giving legal advice. No warranties. We disclaim all legal liability. More...
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