For Ohio residents going through a divorce, negotiating the division of assets might be a very uncomfortable aspect of the process. However, advocating for themselves might be the best decision they take, particularly if they keep certain things in mind that might protect them and ensure that the division is a fair one in the long term.
Some of the financial mistakes people make during the divorce process are a result of not being knowledgeable about the value of assets, how they compare to other assets and their tax implications. For example, many people wish to keep the home after a divorce, sometimes due to an emotional attachment to the property and an attempt to limit the changes going on. However, when calculating the value of the home, people should keep in mind the costs of its upkeep, which can be a burden that some people are not able to sustain. In the same way, keeping the home in exchange for other liquid assets such as retirement accounts, might not always be a fair division.
Retirement accounts are another area that needs to be handled carefully. In the case of a 401(k), for example, it is important to secure a QDRO that allows the person to withdraw money from the 401k without incurring the early withdrawal penalty. Additionally, people should also remember to roll the withdrawn amount into an IRA within 60 days to avoid having to report the money as taxable income.
One more way people who are divorcing might protect themselves during these negotiations is by getting assistance from a lawyer. A lawyer might explain the options available to the client regarding the division of assets and fight for a fair settlement.