Splitting the Booty- How to Divide Your Assets in a Divorce
Wealthy divorcing couples often have enough cash (or assets that can be quickly converted to cash) so that if one of them wants to purchase the other’s interest in the family home or the family business, there is cash to accomplish it. For example, if their assets consist of $1.5 million in stocks, bonds, and mutual funds and an unmortgaged home worth $500,000, buying out the other spouse’s $250,000 interest in the house is easily accomplished.The spouse who wants the home pays the spouse who does not $250,000 from his half of the $1.5 million and both go away happy.
Not all divorcing couples have the financial ability to accomplish their post-marital goals, however. A wife who works as a paralegal does not have the buying power of a husband who is a senior partner. If there is not enough cash for her to buy him out of the family home, she may not have the borrowing power to do it.
More importantly, buying him out of the family home may not be a wise financial move. Child support can help pay a second mortgage, but child support lasts only so long. You might be able to pay the notes, but not the insurance, the taxes, and the maintenance and repairs. Your lawyer can help you figure out how to divide your assets in a divorce.
Learn more about this and get more no-nonsense advice on how to deal with your divorce by downloading our free Ebook, The A to Z Guide to Divorce.