Dividing Assets in Divorce can be like playing for Marbles
Have you ever played the game of Marbles? First you make a circle about 3’ wide. You choose your shooter marble- this should be bigger than any of your other marbles. You put your marbles in the center of the ring to play. When it’s your turn, kneel outside the ring and flick your shooter marble out of your fist with your thumb, trying to hit as many marbles out of the ring as possible. If you knock any marbles out of the ring, keep them and have another turn. Continue until the ring is empty. The winner is the person with the most marbles at the end of the game.
Going through a difficult divorce may seem a lot like that. The assets are inside the circle and each of you choose your “shooter” a.k.a. attorney. Proposals go back and forth between the attorneys and your trying to knock as many of the assets out of the opponent’s possession (ring) as possible. The player with the most assets is the winner, right?
Winners and Losers can be very deceiving on the outside. Maybe you felt lucky because you got to keep your $350,000.00 in retirement assets and she got $300,000.00 from an after-tax stock account. Was it lucky? A $300,000.00 stock account has had the taxes paid on them already and the growth is only taxed as capital gains. Your retirement account will be taxed 100% at ordinary income tax rates which are higher than capital gains and it is based on all the assets, not just the growth. Hiring a Certified Divorce Financial Analyst, CDFA®, will help you see the pros and cons of all your financial decisions and keep you from losing more marbles (assets) than you need to.
Consult a financial professional that has been trained in helping clients navigate the challenges of divorce before you sign on any dotted line! Whether you have just decided to get a divorce, are in mediation or are already working with an attorney, consult with a CDFA®, Certified Divorce Financial Analyst. At Dekker Divorce Financial Consulting we offer a ½ hour complimentary consultation. Please give us a call today to schedule your appointment. 480-897-1067.