Don’t Be Blindsided By The Division of Marital Property in Your Divorce
Many people fail to realize divorce requires more than simply signing a few documents. If you’re divorcing in Massachusetts, don’t be blindsided by the many decisions you’re about to face regarding the division of your marital property. Not all property is valued or taxed in the same way; therefore, the process can be long and confusing without the help of a knowledgeable attorney at your side. It’s important to consider that even though different financial accounts are valued at the same amount, the account owner may receive different withdraw amounts. This is because withdrawals will not be taxed in the same way from a money market, for example, as other accounts would be. The division of retirement accounts can be particularly daunting. There are currently no tax codes or other regulations in place regarding IRA accounts. This has allowed courts to permit IRAs to be divided between divorcing couples. Regarding real estate property, if one spouse is granted full control of the marital home, for example, or vacation properties, then he or she is usually expected to pay taxes on those properties as well. Debt is another matter you will need to be well-informed about when dividing property. No matter who is awarded the property, debt owed is still the responsibility of both parties, if the property was jointly owned. This means in the event the awarded party cannot fulfill payment obligations, the bank or other entity holding the debt will expect the second named party to fulfill payment obligations.