The three “D” notion is nothing new. The main reason that people liquidate their assets are typically due to debt, death, or divorce. So, let’s talk divorce and assets.
What exactly is an asset? It can be real estate, motor vehicles, boats, planes, bank accounts, retirement or investment accounts, business interests, stocks, bonds, crypto, art or jewelry collections, cash values relative to life insurance policies, frequent flyer miles, on and on.
While some assets can have a straight-forward value, others can have a personal worth or appreciation that changes the landscape of its actual value, which can create a huge divide in setting or determining asset value. There are many ways to handle assets in a divorce action, however, liquidation versus allocation are two very different things. Liquidation can occur when there are substantial debts to be paid, when an agreement cannot be reached in separating or dividing the assets, or when cash is needed to buy out the other spouse. Allocation to one spouse of a specific asset or assets can occur when balancing out the overall marital estate (ie taking debts and other items into consideration) to create an equitable or fair overall result based upon the unique financial circumstances of each divorce case.
When contemplating divorce you want to ensure that you have the right team in place, with both the legal and financial experience to discuss your realistic options. Reach out to the Chicago divorce lawyers of Ward Family Law today; you can email firstname.lastname@example.org for scheduling your initial consultation.
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