Splitting Assets with Loretta Hutchinson
Assets are something of value that you own. It could be jewelry, cash, a home…. But it can also be life insurance policies, 529 education accounts and investment accounts. The value is set on the “separation date” that you negotiate.
When splitting a home, you remove the mortgage and split the principal remaining on the home. If you want to keep the home, you may want to negotiate for cash from other assets so you can continue to make payments.
Educational accounts for the kids tend to get sidelined, but these can be significant and worth looking at. Who is the beneficiary and who determines how the money can be spent? Spell it out in your agreement. Can Billy’s spring break money come from the 529 or only educational expenses?
Both parties are responsible for respective legal bills during a divorce, but what do you do if you’re strapped for cash? Your family can help without it becoming part of the asset pool, but you want to keep it private and ask a CDFA how to handle that payment.
One more reason to keep you finger on the pulse of finances if you’re still married.
