Divorce is never easy, and the more complex the property you share with your spouse, the harder it is to figure out a fair split and the more opportunity there is for disagreement and hard feelings. An experienced Reno, NV divorce attorney can help enormously in these difficult situations.
Classifying Community vs. Separate Property
The most important initial step is to determine what property is “community” and what is “separate.” The former belongs to both spouses and will by default be split 50/50. The latter belongs to one spouse alone and is not subject to division. This can be extremely complicated to work out, and particularly when there has been a mixing of funds.
Generally speaking, community property is anything acquired by either spouse once the marriage began. Separate property is anything either spouse owned before the marriage or that was gifted or inherited by one spouse alone.
Separate property can become communal property, however, when it’s mixed with communal property. An inheritance, for example, remains separate if it is kept in a separate bank account. If it’s put into a joint account and mixed with shared funds, or if it’s invested in a jointly owned family business or used to buy jointly owned investment property, it can become marital property.
Valuing Complex Assets
It won’t be possible to divide the property if its true value isn’t understood, so your attorney will coordinate with various evaluators. You may need a real estate appraiser to get the proper value of your home or commercial holdings, a forensic accountant to value stock options or investment portfolios, and a business valuator if you own a business.
Finding All Assets
In a contentious divorce particularly, it is not uncommon for one spouse to try to hide assets. And even in an amicable divorce, it’s possible for a couple to simply forget about certain assets. Your lawyer will have contacts with various forensic accountant specialists and will work to uncover all assets, including any that might be overseas and any that a spouse may be deliberately trying to hide.
Handling Retirement Accounts and Pensions
Dividing 401(k)s, IRAs, pensions, or annuities can be extraordinarily difficult, especially if you want to avoid ruinous taxes and penalties. One of the most important jobs of your attorney will be to come up with a plan for dividing these difficult assets and ensure the division is acceptable to the court and does everything possible to protect you financially.
Considering Tax Implications
No matter what the type of property, dividing it will affect taxes. There could be capital gains tax on the sale of property or on retirement account withdrawals and high taxes from the sale of a business, for example. An attorney will make you aware of all the implications of each decision so that you can make the best choice.
These are just a few ways that an attorney will help you with a complex divorce. Talk with the Barber Law Group in Reno, NV now for help with your specific divorce situation.
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