Tag Archive for: equitable division of assets

First Steps in Dividing Assets in Your PA Divorce

Dividing assets in a divorce is often one of the more stressful steps of the process. Pennsylvania follows an equitable distribution policy, meaning the courts attempt to divide a divorcing couple’s assets fairly between them. This is often easier said than done. 

Following these initial steps can help you begin to separate property from your spouse and start moving forward financially. 

Pinpoint the Date of Separation 

What day did you and your spouse separate and/or begin the divorce process? Write down this date. This will help you determine which assets and debts are considered community property or marital assets and which are separate. 

The assets you acquire after the date of separation could be considered separate property. This date is also important in determining the length of the marriage and the start date for spousal support or child support, if applicable. 

Close All Joint Bank Accounts and Open Your Own

Begin by opening your own separate bank account and start putting your paychecks and other income into it. This will allow you to begin accruing your own money that is completely separate from your spouse. Furthermore, you won’t have to worry about accidentally stealing from their share of the funds when you begin paying legal fees or other associated expenses from the divorce. 

Eventually, you will want to close any joint bank accounts that you share with your spouse. However, in the beginning, you may want to keep a joint account open from which you can pay household and other shared bills until you decide who will be responsible for paying which bills.

Close All Credit Cards and Examine Your Debt

Next, contact your credit card companies and close any shared accounts as well. Open your own credit cards that are solely in your name. 

If any of your shared credit cards are in the red, talk to your attorney about how to proceed. Along with dividing assets in a divorce, you must divide shared debts fairly. 

Hold On to Pensions and Brokerage Accounts for Now

You may assume that the next step should be to divide pensions or brokerage accounts between you. Instead, hold off on this until you have spoken with your attorney. You may need a qualified domestic relations order (QDRO) to gain permission to divide the accounts between you. 

Talk to Your Mortgage Broker About Keeping the House 

You may also assume that you will keep the house and that your spouse will find somewhere else to live. While this might be your preference, it isn’t always doable. You should speak with your mortgage broker about the requirements to maintain the mortgage on your own. 

If you cannot afford the mortgage based on your finances, you may need to sell the house as part of the property division agreement. Alternatively, perhaps you could sacrifice other assets to keep the house. 

Let Karen Ann Ulmer, P.C., Assist in Your Asset Division 

Dividing assets in a divorce may feel overwhelming, but our attorneys are here to guide you through this process. We can help with asset valuation and maintain your right to equitable distribution. Contact Karen Ann Ulmer, P.C., today at (866) 349-4149 to book a confidential consultation.

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Divorcing When Wealthy: Please Use Common Sense

Divorce is never an easy decision, but when wealth enters the equation, it adds layers of complexity that can make the process more challenging. High-net-worth individuals face unique issues and considerations when seeking to dissolve their marriages. Nearly all divorces are resolved through negotiations, and negotiations are especially important when a couple is wealthy.

Legal Representation

The more the two of you have, the more is at stake in a divorce. High-net-worth divorces require specialized legal representation and the use of outside experts. You rely on other professionals to run your business or manage your wealth. It only makes sense to retain a Karen Ann Ulmer, P.C., attorney to protect your interests during this critical time in your life. We will help you negotiate the best resolution possible for you and your family.

Equitable Asset Division

One of the most significant challenges in a high-net-worth divorce is the division of assets. The greater the assets and the more complex they are, the more difficult it can be to unwind the financial relationship between the two of you. Once we get all the information about the assets you hold, we can begin to negotiate a fair and reasonable division that will work for both parties.

Prenuptial Agreements

Prenuptial agreements are legal documents specifying the division of assets if the couple divorces. These agreements are especially useful when one or both parties have substantial wealth. If the two of you signed an agreement, we can review it.

If it is properly written and executed, it is binding. All that the agreement covers cannot be disputed or litigated during the divorce. That is good if the agreement is favorable to you, not so much if it is not.

Spousal Support

Depending on the circumstances, wealthy individuals may be required to pay substantial spousal support (alimony) to their former spouse. The marriage’s length, the income disparity between the parties, and the lifestyle to which the spouses are accustomed play a role in determining the amount and duration of spousal support.

Negotiating this aspect can be contentious, and often, the party potentially paying the support may be able to lessen or eliminate it if the other party receives certain assets or other issues are negotiated in their favor.

Business Interests

For those owning businesses, divorce can significantly impact a company’s operation and ownership. It is vital to consider the implications of a divorce on the business, including issues like stock ownership, control, and valuation. Depending on which side you are on, you want to protect your business interests and ensure its continuity, or you want your fair and equitable share of the company. Negotiations concerning the ownership of a family business can become emotionally charged, but it is something we have successfully handled many times.

Take the Best Approach

Litigation involving high-net-worth individuals can be very complex, time-consuming, and expensive. Those with more resources can spend more on litigation, but that is not necessarily a good idea.

In addition to spending hard-earned family wealth in the courtroom, divorce trials are open to the public. Whatever “dirty laundry” aired at trial can become public knowledge. You also lose control of the divorce’s outcome when it is put into the hands of a judge or jury.

Reaching a divorce settlement is like negotiating a business deal. It is all about costs, benefits, risks, and how to best manage them. Your divorce will be resolved one way or another. If the parties are reasonable, common sense will dictate the give and take between the parties. Once both parties know all the facts about your assets and other relevant issues, it is best to start negotiations sooner rather than later, because they could take a long time.

If your spouse is unreasonable when negotiating or sees the divorce as a way to get “payback,” litigation may be inevitable. Whatever path your case takes, Karen Ann Ulmer, P.C., attorneys will protect your interests and defend your rights.

Get the Help You Need from an Attorney You Can Trust 

If you are thinking about getting divorced or you have decided it is the right choice for you, call us at (215) 608-1867 or schedule a consultation online now. No matter your income or assets, you can start a new chapter in your life. We can discuss your situation over the phone, via a teleconference, or meet in our Langhorne or Doylestown office. 

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