When you’re married, there are but a few assets you could individually own. Others, however, will be considered marital assets. In the event of divorce, assets considered marital is divided between you and your spouse. However, the process isn’t as easy as it sounds as a lot comes into play.

Most divorcing couples make avoidable mistakes when divvying up assets. But with the right legal counsel, you’re sure of getting past this phase without any damage. That is why it is critical to work with a divorce attorney to be safe. Here are some errors and the course of action to take to protect your assets during divorce.

1. Neglecting taxes

Do not be deceived, as some assets might appear to be the same figure but have different values. For instance, if you and your spouse have $20,000 in stocks and another $20,000 in a savings account, the value of both when tax is factored in will never be the same.

The $20,000 you and your spouse have in stock might have a capital gain of $4,000, leading to capital gain being taxed and leaving one spouse to lose some value. The reason is that some investments are taxable, resulting in a capital gain once sold.

2. Withdrawal from a retirement account

During a divorce, you have to be careful with your 401(k) or some retirement account handled by your employer. The reason is evident, as most divorcing couples might decide to give some parts to their spouse.

However, there is a 20 percent tax withholding on this, and holders less than 59 of age will get a penalty of 10 percent for early withdrawal. That is where you work with an attorney to draft a Qualified Domestic Relations Order (QDRO).

3. Acting based on emotions

Divorce is no doubt a rollercoaster of emotions, and you’re likely to make the mistake of relying on your emotions when making critical decisions. Although it is healthy to process your emotions, not allowing it to detect your actions will play in your favor.

But by flowing with your emotions, mistakes are bound to happen. You might end up with less, even penalized if anger or other destruction behavior guides your decisions.

4. Failing to plan

It is said that failing to plan is like planning to fail. This is likely to happen due to your urge to get out of this bad situation as quickly as possible. To avoid mistakes, it is important to work with one of our experienced attorneys with decades of experience.

Your attorney will guide you every step of the way, ensuring you get the best possible outcome. Our job is to protect your best interest, and we do that by avoiding mistakes. Feel free to give us a call or fill our form to book an appointment.