Most of the time couples who are out for divorce would already have plans for their future. It’s just right to plan ahead, right?
Now, one of the main reasons for this is to avoid financial problems in the future especially when you are already seeing how much you’ll be spending with your divorce. Now, couples would start thinking, “Can you sell assets during a divorce?”
The reason behind the action
There can be many reasons why one should want to sell assets during a divorce. It may be because they want to liquidate all assets before parting ways; others want to seek revenge or just to get more money to themselves.
There are also other reasons why someone would want to liquidate the assets such as for paying professional lawyer’s fees, starting a new life and more.
Remember, both you and your spouse even in the process of divorce have the legal and equal right to a share all properties that you’ve acquired during the course of your marriage. Now, if you sell it without the other person’s consent or knowledge — you will be held accountable and the judge will have a say to compensate the other person for the lost asset.
Types of assets
Before you decide on anything, you must first understand the types of assets.
Your properties must be first classified as either a marital or separate property. Then there is what we call a divisible property, this means that it is an asset that produces income or has the capability to change the value after divorce.
Separate or non-marital property
Separate or non-marital property includes any property owned by any of the spouses prior to getting married. This may include but is not limited to properties, assets, savings and even gifts or inheritance. Before or during the divorce, the owner can do whatever they want to their properties with no liability.
Marital property or matrimonial assets
These are the properties that cover any assets that were acquired during the course of the marriage. It doesn’t matter which of the couple bought or earned it. It’s a mutual property and will be subjected to equal distribution of rights or value when liquidated.
During the divorce negotiations, there can be two main ways to divide your marital properties. The court will assess the situation and will attempt to split the property equally not unless there are issues that will prevent this to happen.
Protecting your assets in divorce
Protecting your assets in your divorce is crucial when your spouse has a personality disorder, an affair or is just out to get even with you. There are people who will do everything to win the divorce negotiation – no matter what.
Be proactive and do what you can to prevent this, there are also ways to hold off any transactions from your spouse once the divorce process starts. This will also depend on your state laws.
Know your state law
Each state has different divorce rules and this will affect how you can divide your property.
It’s better to know your state laws when it comes to divorce and ask for guidance if you want to know what would be the smartest move to do.
Can you sell assets during a divorce? While most states won’t allow this, in some states, there can be exemptions. Again, each divorce case is different and in any event that you’re allowed to do this, it’s important to remember the do’s and don’ts of selling properties and assets.
Do’s and don’ts to remember
- If it has been decided to try and sell assets during the course of the divorce to pay off a debt, pay for the divorce or share the profits – then here are some do’s and don’ts for selling assets in your divorce.
- Do get appraisals for what you call the fair market value of your assets and properties. Don’t be in a rush to get rid of your assets just to get quick money. Know the value and get the best deal for it.
- Don’t rush the process. While you may want to quickly liquidate all your marital properties so you can get your share, make sure that it doesn’t result in a much greater loss. If you have, for example a family home. Wait for the best deal and don’t settle for what you can get now. The value may increase overtime and it might be best to discuss it first.
- Do seek the approval of your spouse before deciding to sell your marital properties. You may argue all the time but it’s just right to let your spouse have a say in this matter. In any event that you know this won’t work; you might want to seek a mediator’s help.
- Don’t hesitate to ask for help if you are seeing that your spouse is not abiding by the rules of your divorce or if you are seeing that your spouse is in a hurry to dissipate your properties. In any event that there are actions against the rules of your divorce — speak out and ask for help.
- Do your homework and have a list of all your assets and the documents supporting it. Also do this for your non-marital assets because it’s always good to have everything documented.
- Don’t be compromised. This means that if your spouse has laid his terms and appraisals about your marital properties and asking you to agree – don’t. It’s better to have your properties appraised again just to make sure that everything is right. There can be cases of deception especially when it comes to assets and financial negotiations. Be aware.
You don’t have to rush about this, weigh your choices
Can you sell assets during a divorce? Yes, if it’s your assets before you were married and in any event you’d want to sell properties that you acquired during the marriage, you still have to talk about it and then split the money that you will receive.
Just remember that you don’t have to rush about this. You may be too focused on earning the money that you might forget how valuable that property is. Weigh your choices because you don’t want to lose valuable properties or assets.