Tips for Transferring Assets Conflict-Free
Once you identify all marital assets that are subject to division (excluding separate assets), you can begin the process of dividing and transferring your assets. Transferring assets between you and your spouse can be difficult, but here are some helpful tips to facilitate a smooth asset division.
Know New Jersey laws on asset division
New Jersey is an equitable distribution state. This means each spouse gets a fair share of the assets, which may or may not be equal. Starting from this point, you will need to put some thought into what you consider to be fair given the facts of your case.
Consider Present and Future Value
Before you agree to any proposed property divisions, consider each asset in terms of risk. Taking the family home in lieu of cash accounts in an unstable real estate market is a big risk, especially if the home needs pricey repairs or expensive upkeep. Likewise, volatile stocks might not be a sure thing, so heavily consider these factors before agreeing to anything.
Look Ahead to Tax Season
Not all assets are taxed the same as transferring assets. For example, certain, but not all, retirement accounts can be rolled over tax-free. Similarly, consider how the divorce will affect your taxes. If you could lose homeowner or other write-offs in the asset division, make sure your increased tax burden is accounted for.
Don’t Waste Assets
In divorce, you and your spouse have a common adversary: the IRS. If you plan properly, you can reduce both your tax burdens by finding creative ways to transfer assets. Typically, assert divisions are not taxed. But changes in exemptions, write-offs, and tax credits, common when a household divides, can leave you both with an unexpected tax liability. Make sure you work closely with both a New Jersey divorce attorney and a financial advisor to minimize the tax consequences of your divorce. Similarly, think twice before you embark on a bitter courtroom tirade, which can easily cost thousands. You need to work strategically with your spouse in your asset division to minimize attorney fees, court costs, and your tax liabilities.
Tie Up Loose Ends
This tip incorporates all the above. Transferring assets takes a keen attention to detail. Even small oversights, such as not specifying which spouse gets what tax break, can cost you money down the road. Assuming you want a clean break from your financial life with your spouse, work with a skilled New Jersey divorce attorney, don’t leave any stone unturned, and don’t agree to anything without considering the above factors.
Do you need help transferring assets in your New Jersey divorce? If so, Williams Law Group, LLC can help. Our skilled divorce attorneys can help you navigate your asset division from start to finish. Located in Short Hills, New Jersey, Williams Law Group, LLC provides compassionate and dedicated legal services to Union, Bergen, Essex, Hudson, Morris, Monmouth, and Middlesex counties, and the surrounding areas. Our knowledgeable attorneys handle divorce and family law, child custody, and child abuse/neglect cases. Call our office at (908) 810-1083, email us at info@awilliamslawgroup.com, or contact us through our confidential online form to schedule a consultation and ultimately get you connected with an experienced New Jersey divorce and child custody attorney.