Indiana Law Blog
Dividing assets is one of the most complex and contentious aspects of a divorce. Missteps during this process can have lasting financial consequences. We are hired on many cases every year to try and fix issues in finalized divorces which can cost thousands and thousands of dollars to correctHere are some of the most common mistakes to avoid when dividing assets in an Indiana divorce.
Mistake 1: Overlooking Hidden or Less Obvious Assets
Many people focus on major assets like the home or retirement accounts but forget about:
- Stock options and restricted stock
- Business interests
- Collectibles, art, or valuable personal property
- Deferred compensation or bonuses
Failing to account for these can lead to an unfair settlement.
Mistake 2: Letting Emotions Drive Decisions
It’s easy to become emotionally attached to certain assets, like the family home. However, holding onto a property you can’t afford can create financial strain. Aim to make decisions based on long-term financial security rather than short-term emotions.
Mistake 3: Ignoring Tax Implications
Not all assets are equal when considering tax consequences. For example, withdrawing funds from retirement accounts may trigger taxes and penalties. It’s important to understand the after-tax value of each asset before agreeing to a settlement.
Mistake 4: Underestimating Future Expenses
Failing to plan for post-divorce expenses—such as housing costs, insurance, and child-related expenses—can lead to financial difficulties down the road. Create a detailed budget to help guide your asset division decisions.
Mistake 5: Not Getting Professional Help
Dividing assets can be highly technical and requires careful analysis. Working with experienced attorneys and financial professionals can help ensure you receive a fair and comprehensive settlement.
Final Thoughts
Avoiding these common mistakes can help you achieve a more secure and fair outcome in your divorce.
If you’re preparing for a divorce and want to protect your financial future, the team at Harshman Ponist Smith & Rayl, LLC can guide you through every step of the asset division process. Contact us today to schedule a consultation.