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Dividing Assets and Debts During Divorce, PART 2
One of the thornier issues that comes up in divorce negotiations is how to divide assets and debts. Previously, in PART 1, we looked at the difference between community property (California being one) and equitable division of property states. We then examined some cold hard facts about who keeps what during divorce. Let’s continue with the advice of Carlsbad financial planner, John Lohrenz…
LPL Financial Advice for Carlsbad: Who Keeps the House?
Your home is probably the largest asset between you and your spouse, and it’s likely laden with the most emotional baggage, either positive or negative. A divorcing couple must decide which spouse gets to keep the house or whether or not to sell it. Many Carlsbad residents decide to sell, either because neither spouse can afford to own a home on their own or because they don’t own enough other assets to offset the value of the house’s equity.
Another option is to agree to postpone the sale of the house until a specified future date. This can be done either to provide stability for any children currently living in the house or to avoid a poor housing market. Once the house is sold, both spouses split the equity.
Keep in mind that if you sell the house, you’ll have to decide together the selling price, broker, showings and other details involved in selling a home. Similarly, if one of you keeps the house, there will be paperwork and fees to contend with in order to transfer ownership of the house.
Beware of any attempts by your spouse to hide assets or rack up debt that you’ll both be responsible for. It can be hard to keep track of all of your assets and debts during a divorce, especially if you’ve been married for a while and have complex investment portfolios, and many Carlsbad residents in the midst of a divorce use that to their advantage. Hiding assets, overpaying on taxes or underreporting income during divorce proceedings is not only unethical, but also illegal.
An experienced LPL financial advisor in Carlsbad can help you make informed decisions throughout your divorce, such as whether to keep or sell the house and how to divide your assets fairly. If you and your spouse are able to work together, you can negotiate a fair division of assets and debts that will satisfy both parties. Otherwise, the law governing your state will decide who gets what, which may not be in the best interest of either of you.
If you want to get started on your journey today or would like individualized investment/financial advice from LPL financial advisor, John Lohrenz, please contact JKL Wealth Management at:
Phone: (858) 535-1705
Fax: (858) 535-1701
Alternatively, fill out the Contact Form and we’ll get back to you shortly.
731 S. Hwy 101, Suite 2K, Solana Beach CA 92075
About Carlsbad, North San Diego County
Carlsbad – the perfect place for sun and sea – is a mid-sized city in North San Diego County, California. Over time, Carlsbad has still managed to keep up its small town vibe by maintaining its growth at a minimum, positively reinforcing involvement from the community and preserving many of the open spaces found scattered throughout the city. Carlsbad is home to about 109,318 residents. The city has a warm Mediterranean climate with cool winters and warm, dry summers. Futtsu (Japan) and Karovy Vary (Czech Republic) are Carlsbad’s two sister cities, as assigned by the Sister Cities International. The top employers within the area include ViaSat, Life Technologies Corporation and Callaway Golf, to name but a few.