3 Financial Issues That Can Complicate Divorce

 Posted on August 11, 2023 in Divorce

If you are planning to get divorced, you are likely hoping that the process will be relatively easy. A more financially complex divorce that needs to be contested can take several years to finalize. However, if you and your spouse have a complicated financial situation, it is likely worth it to take the extra time needed to sort through these matters. A variety of financial factors can lead to a more complex divorce. Depending on the nature and extent of property each of you owns separately as well as that of your marital property, your divorce may be somewhat challenging. If either of you has ownership interest in a business, or you have joint investments, or have built up a retirement account together, these types of property will need to be addressed in your divorce. The best strategy for dividing complex assets or working through complex financial situations will depend on the nature of the assets involved. It is important to be represented by your own attorney throughout the divorce process. 

Complex Financial Situations to Resolve During Divorce 

Common types of complex financial issues that must be resolved during divorce include: 

• Retirement plans - If you and your spouse have shared retirement accounts or plans, each spouse will likely be entitled to a share of these assets, regardless of whose income contributed to it. However, there may be concerns such as penalties for early withdrawal or tax implications to be concerned with. 

• Real estate - A house or building cannot simply be split in half down the middle. Either one spouse will need to accept substitute property in lieu of the real estate, or the property will need to be sold and the proceeds divided. 

• Business ownership - Even if one of you had an ownership interest in the business prior to the marriage, any appreciation in its value during the marriage is likely to belong partially to the other spouse. Courts believe that the contributions of the non-owner spouse are instrumental in allowing the owner spouse to grow their business. 

If one of these describes your financial situation, your divorce may be somewhat more complex than most. There are multiple strategies for dividing assets like these, and an attorney can help you determine which strategy may serve you best. 

Contact a DuPage County Divorce Lawyer

Law Office of Ronald L. Hendrix, P.C. is experienced in addressing complex divorce issues. Our skilled DuPage County divorce attorneys will strive to help you divide complex assets to your satisfaction. Contact us at 630-355-7776 for a complimentary consultation. 

Source:

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-divorce