To properly divide your assets in a divorce, you will need to do a valuation for each asset. Some assets are simple to assign a value to, such as money, but others can be tricky.
Often when you have tricky situations, it is easy to make mistakes that will cost you as you reach a property division settlement. CNBC explains that one of the biggest areas where people make mistakes is with taxes. You have to always account for taxation and how it will impact the final value of the asset.
It is also easy to make mistakes with the value of the family home. If one of you wishes to keep the home, it will need a new appraisal. The value likely changed over time. There may also be differences in the value based on whether you will sell it or not. You should consider all the costs of the home when determining its value.
Your retirement accounts may have varying values as well. The face value may not be the true value. If you have to pay penalties or deal with other fees, it could reduce the overall value when dividing the account. You may also need to factor in the costs of drawing up documents related to splitting the accounts.
Many assets you will divide will have some other costs associated with them. This will lower the actual value to you in the end. It is well worth it to consider these costs and alternative options that will maximize the value of the assets that you get when dividing property in your divorce.