If you must liquidate assets, do it within a negotiated, mediated perspective," Black said. equitable distribution Nine states divide property according to community property law, while the rest apply equitable distribution principles.
They are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.
"Not only are most courts restricted to what they can do to value assets, divide assets and consider potential tax effect, but judges have limited time to focus on technical and financial nuances," Marcyan said.
In collaborative, negotiated settlements, parties can apply valuations that a judge may not be permitted to take (e.g., personal goodwill, fair market value, fair value).
The most common considerations include:—L A court may balance a small award of spousal and child support with a greater distribution of assets.
In some states, although not the law, a fair policy provides for one party to be awarded at least one-third of the assets accumulated during the marriage.
"A rose is a rose is a rose, but not when it comes to assets," said Claudia Mott, owner of Epona Financial Solutions, referring to the treatment of assets as a result of divorce.
"Every family's financial picture is comprised of a variety of assets, each of which may need to be valued differently if a liquidation is necessary," said Mott, who is also a certified financial planner and a divorce specialist.
Based on the quantity available, the mix of products and the desired recovery, it can be worthwhile to sell the liquidation lot in small quantities to many buyers until it sells out.
You ship the goods to the Via Trading facility where they are processed into small lots and sold by the case or pallet to hundreds of buyers. Certain types of products may be most appropriate for liquidation through Via Trading’s monthly live auctions.
Whether they live in an equitable distribution or community property state, the parties can choose to negotiate their own property settlement that courts will honor.
Their distribution agreement does not have to follow the laws of their state.
And because transferring assets between spouses is a nontaxable event, it becomes a great motivator to trade assets back and forth, according to Black.