Complex Asset Division Can Derail A Divorce Proceeding
Untangling the finances of a married couple can be complicated, especially if you have complex assets such as businesses, retirement assets, assets owned prior to the marriage or assets inherited during the marriage. At The Offices of Keane Law, LLC, in Boulder, our attorneys are here to advise you and make sure your financial interests are protected. We offer a free 30-minute consultation to answer your questions.
Business Division And Business Valuation
Unless you have a prenuptial or postnuptial agreement, dividing a business can be contentious and costly. Even though you may have owned a business prior to your marriage, any increase in your business’s value after your marriage can be considered marital property, especially if your spouse contributed (either financially or with sweat equity) to your business during your marriage.
Our lawyers will work with business valuation experts to ensure that your business is properly valued and divided.
Retirement assets such as pension plans, 401(k) accounts and IRA accounts are marital property and are subject to division. If you began accruing retirement assets before your marriage, your retirement accounts will be divided into two parts:
- The portion earned before your marriage, which will be yours alone.
- The portion earned after your marriage, which is subject to equitable distribution.
Retirement assets are divided using a qualified domestic relations order (QDRO).
Assets Owned Before Marriage Or Inherited During Marriage
Assets you owned before your marriage or inherited during your marriage are yours to keep, so long as you kept those assets separate. However, when you commingle separate assets with marital assets, your separate property can become marital property. For example, if you deposit an inheritance into a joint savings account, the inheritance will become martial property. If you can “trace” all or part of a marital asset to a separate source by proving that a certain amount of the asset was once separate, you may be able to have that separate portion set aside as your separate property.
Real estate owned before your marriage can have separate and marital property components, even if the house remained titled in your name alone. For example, any increase in the value of your premarital real estate during your marriage would be marital property, even if your spouse did not help pay mortgage payments, make repairs, or otherwise contribute to the maintenance of your premarital real estate.
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