Many parties believe the hardest part of their family law dissolution of marriage matter is behind them when they settle all of the terms of their agreement. However, things can get very complicated, despite the terms of the agreement being agreed to. For one thing, a settlement agreement that is acceptable to the Court has to be drafted and agreed upon by both parties. This can raise numerous issues that were not contemplated, including small, minor nuances, which the parties may disagree upon. Working these minor issues out can be a time consuming process.
Additionally, parties may agree on a dollar amount or a percentage to pay to one another in a dissolution of their marriage, but effectuating the payment can be a bit more challenging, depending upon what sort of accounts are being divided. For one thing, certain retirement accounts, such as 401(k)s, may require a Qualified Domestic Relations Order to divide the account between the parties without incurring a penalty. Similarly, there are IRA’s which have to be rolled over into a specific account, rather than taking as cash. Finally, real property, at times, needs to be sold, and proceeds need to be divided. This is a lot to try and navigate; however, with proper legal counsel, these assets can be divided in a cost-effective manner, maximizing cash and liquidity, and avoiding penalties that are typically assessed in these sorts of divisions. Speaking to an attorney regarding how to divide property is always a good idea, and our firm is very knowledgeable regarding these issues. While we cannot give tax advice, we can advise as to what may be the most cost effective approach for dividing these particular assets.