The best way to divorce is to negotiate the settlement on your own and submit the agreement to the court for approval. Here are a few things to keep in mind during the negotiations:
Prevent Emotion from Ruining the Negotiations
A common advice for divorcing couples is to avoid being emotional during the negotiations. This is well-meaning advice, but it is not practical because people don't usually choose what to feel. However, you can limit the impact of your emotions in the divorce process. For example, you should hire professionals such as tax experts, business appraisers, divorce attorneys, among other professionals, to help you. Those people will not be guided by emotions during your divorce negotiations so you can rely on their input.
Don't Be Greedy or Proud
Greed and pride will both hurt your negotiations prospects; they will also lengthen the negotiation process. For example, being greedy may cause you to "demand" the best and largest assets among your marital assets or insist on a large share than you are entitled to. Being proud may prevent you from asking for assets that you need for your post-divorce life.
Don't Ignore the Future Implications of Your Decisions
Every decision you make during the divorce negations will have an impact on your future life. For example, if you get the marital home, you are inheriting not only its equity but also regular property ownership costs such as property taxes and maintenance costs. Another example is when you get a family-owned business as part of your divorce settlement; any future appreciation or devaluation of the business will affect your future financial wellbeing.
Consider the Impact of Taxes
You also need to consider the impact of taxes on your assets; especially capital gains tax that may affect your share of assets negatively. The capital gains tax is levied on the difference between the current market value of an asset and what you initially paid for it. This means assets that have appreciated are likely to attract capital gains tax. Therefore, your calculations should include capital gains tax so that you don't overestimate how much you are getting from your divorce settlement.
Be As Keen On Debt As You Are On Assets
Lastly, divorce settlements are not just about what you will be getting; it also covers what you will be giving away or spending. For example, don't forget that you will also be required to part with some assets to settle any debts you may own. Therefore, while fighting to increase the share of assets, you should receive, don't forget to also fight to reduce your share of debts.
Don't forget to involve your attorney in the negotiations to ensure your legal rights are protected. The attorney should also be involved from the start so that they can take the issue to the court if the negotiations fail.Share
18 November 2017