It may be difficult to come to the conclusion that you and your spouse should end your marriage. However, just like many other couples in Texas, divorce may be the best thing for both of you if you can no longer make your relationship work. To make the process as easy as possible, you should discuss your property division settlement with your soon-to-be-ex.
Know the tax implications of your assets
Becoming familiar with the tax implications of each of your assets can help when you discuss property division during your divorce. For example, if you are dividing money from a bank account, it’s different from dividing money from an IRA, which would carry an early withdrawal fee.
Discuss your unique assets
Certain assets can be tricky, such as stock options, cryptocurrency, and retirement plans. When stocks are divided as part of a divorce settlement, they can lose the tax benefits they would otherwise afford. It’s important to tread lightly and be careful when dividing these assets.
Be careful about selling your home
Your biggest asset is your home. Selling the marital home may be a good idea as you can divide the proceeds from the sale with your spouse as part of your divorce settlement. However, it’s also a touchy subject due to reluctance. Many individuals are averse to selling the marital home even after divorce. You can bring up the subject lightly and try to compromise, pointing out the benefits of selling.
Consider whether it’s worth one of you keeping the home
You both may want to evaluate whether keeping the home may be better if one of you is closed to the idea of selling it. If the home has sufficient equity, and you don’t have many assets to divide, the home equity could be a solution for property and asset division in your divorce.
Another option is sharing ownership of the home. While that can be a challenge for some former couples, it can help keep things more stable for underage children.
Property division is often a source of contention during a divorce, but you can make things easier by rationally discussing it with your spouse.