Scranton residents who go through divorce often worry about how their financial health will survive their marital splits. When couples separate and only one partner worked outside of the home, the working spouse may find him or herself paying support while the nonworking spouse struggles to find gainful employment. The partners to a divorce may struggle to find a healthy balance of dividing assets between them so that each has a fresh financial start after their marriage has ended.
Some believe that keeping the monetary value of assets equal is the best way to preserve fairness in asset divisions. This, however, is not necessarily the case for all couples or for all divorce situations. For example, some assets that are initially valued at the same level may more closely resemble investments while others may more closely resemble liabilities.
A retirement account that grows based upon proper financial management may increase in value quickly after a divorce is finalized. A home, however, may slowly appreciate but need expensive maintenance over time. While the retirement account and the home may be valued equally at the time of a divorce, their values may significantly differ in the period of time immediately following a marital dissolution.
When settling the property and financial aspects of a divorce it is important that individuals look at both their short-term and long-term needs. Keeping property division valuations equal between divorcing partners can seem like a good idea but may lead to disparities in the years following the end of a marriage. To best serve their present and future needs, divorcing parties can consult with legal and financial professionals while preparing their property settlement and asset division agreements.
Source: unionleader.com, "Money Sense: Financial mistakes to avoid during a divorce settlement," Marc A. Hebert, May 2, 2015