personal assets

Should You Give up Your Retirement Account in a Divorce?

April 2, 2020 by David Betz

A divorce can be a difficult time for all the parties involved. In addition to the emotional toll of the separation, you also have to figure out how to divide your assets. That can turn into a fierce battle, especially if you don’t part ways on good terms.

One asset that is quite tricky is a retirement account.

In most cases, divorcing couples have a few big marital assets: a house (or more), vehicles, retirement funds, other properties, and so on. When it comes to the retirement fund, the state will generally calculate the part of it that will be subject to asset division from the date you were legally married until the day when the divorce complaint was filed.

Now, here comes the question: should you choose the house or the retirement fund?

It is not uncommon to find yourself having to choose between being left with the house or the marital retirement fund. For many divorcees, choosing the house may seem like the smart option. However, most act based on their emotions. What any experienced St. Louis divorce attorney will tell you is not to make financial decisions when you are highly emotional.

Be sure to discuss these matters with your lawyer and even a trusted financial adviser to decide what would be the best option for your future.

Sure, your house may hold a lot of emotional value and provide a feeling of security and comfort that is so much needed during a divorce. But, in some cases, it would be a disadvantage to choose the house over the retirement account. A house can cost you a significant amount of money each year, while a retirement fund doesn’t use any of your resources.

What to Consider When Making Your Decision

No answer is universally valid in this type of dilemma, because each person has certain expectations, future possibilities, and safety nets. It all really depends on whether you can support the cost of maintaining the house by yourself (at least for a while) and if you have a retirement plan or not.

Try to consider the long term value of a house or other marital assets you are fighting for, versus a retirement plan that you could fund through your contribution, cash out for another investment or just keep as your savings account until needed.

What You Need to Know If You Want Your Spouse’s Retirement Account Share

If you have decided that you would rather be left with the retirement fund rather than the house, then you need to make sure there aren’t any clauses or hidden expenses tied to it. An experienced attorney should be able to tell if your spouse’s retirement plan can get you the amount of money you are hoping for. That depends on some legal aspects that you might not be entirely aware of.

Look for an experienced attorney that has previous experience with this type of asset division and was successful at obtaining a fair share for their clients.

Speak With an Experienced Attorney

Our firm uses experience, good communication, and availability to help families get through life changing events.

Call (314) 801-8488

Apr 17, 2020 @ 5:12 pm

How Couples Can Divide Physical Items in a Divorce

February 21, 2019 by David Betz

Splitting up physical items comes down to knowing what you want, being willing to compromise, and preparing yourself for some level of negative emotion.

One of the most contentious points in a divorce comes when couples divide their assets. The reason is that many of these items have a significant amount of sentimental value, and if they’re physical, they cannot literally be split up.

What is Equitable Distribution?

The first thing you should understand about divorce in Missouri is that it runs on an equitable distribution system. What this means is that every marital asset will be split as fairly as possible. At the same time, some assets may be exempt from this process because one party individually owns them. Figuring out which of your belongings fit into which category is best discussed with a lawyer. Ultimately, every item that you share with your spouse should be split between you.

Build a Comprehensive List of Assets

Before you start to split up your assets, you must understand them. You can do so by making a comprehensive list. This step should not be brushed aside, as you don’t want to miss anything. Some of the most common of them include homes, other forms of property, cars, pets, collectibles, electronics, and furniture.

Give Them Monetary Value

As you can imagine, none of these assets can be split cleanly. As an example, a car cut down the middle is no use to anyone. What you can do instead is assign monetary values to each item. What this allows you to do is obtain half the cash equivalent of each asset, rather than losing it entirely. One thing to note is that some assets, like a home, will require an expert to appraise them. You cannot estimate the values on your own and move on with the process.

Be Prepared to Compromise

When you begin your negotiations with your ex-spouse, you will likely both have attachments to your items. Very few people want to cash out their half of every asset. Instead, they fight for the ones they think are most important. In the process, you’re going to want something your partner wants, and you’ll have to come to some sort of agreement on how you’ll work that issue out. The most common method is looking at all of the most contentious items and deciding which you care about the most about and which you could do without.

Be Prepared for Some Heartache

One of the most painful things about divorce is losing the items that you love. As we explained above, you’ll have to compromise on certain assets if you want to keep the divorce moving. Unfortunately, doing so can lead to heartache, as you lose things that you are incredibly attached to. Preparing for this disappointment is a great way to beat it once it presents itself.

As with the rest of your divorce, splitting up physical items comes down to knowing what you want, meticulously keeping track of records, being willing to compromise, and preparing yourself for some level of negative emotion. Call The Betz Law Firm today at (314) 801-8488 or fill out our online contact form. We are committed to guiding our clients through the court process with same level of professionalism that we would wish for our own family members. We are aware of the trust our clients place in us with the future of their family and we strive daily to earn it.

Aug 2, 2019 @ 3:32 pm

The 4 Most Contentious Issues in Divorce

October 22, 2018 by David Betz

If you are considering a divorce, it is important to understand where you may hit a snag in your proceedings.

If you pay attention to popular culture, you may think that divorces are always stressful and frustrating from start to finish. Fortunately, this is not always the case. In reality, many splits are relatively straightforward, aside from a few terms causing strife between the two parties. Still, those issues can sometimes derail a divorce entirely. Here are 4 of the most contentious aspect of divorce cases.

Child Support

When you and your ex-spouse decide on a monthly child support sum, the paying party is almost always expected to send money every month until the child turns 18. As you can imagine, this extended length of payment makes the stakes incredibly high. The United States Census Bureau has found that the average child support payment is $430 per month. Depending on the age of your children at the time of divorce, there might be hundreds of months before all of your children become adults. Additionally, certain factors can raise that monthly payment significantly, making this term even more contentious.

Alimony

Everything that we wrote about child support applies to alimony too. Because one party is required to pay the agreed-upon amount over and over again for many years, couples often argue heavily about the sum. An additional factor that makes this term so combative is that the money is not designated to the children. The result is that the paying party is especially unhappy because they feel their ex is getting all of the benefits.

Splitting Physical Assets

While often antagonistic, splitting dollar amounts and deciding on monthly payments are relatively straightforward processes. When it comes to physical assets, negotiations become much more complicated. The reason is that you cannot split these items down the middle. Instead, both parties feel emotionally attached to their shared possessions, and deciding who gets what is a difficult process. The most prevalent issues in this category are usually high-value items like houses and cars, as well as sentimental ones. Splitting assets is an area where both parties need to stay in control of their emotions to prevent negotiations from getting out of control.

Custody

As we go down this list, the terms get more and more complicated. First, there were two forms of payment. Next, splitting up expensive and sentimental items. Last, we have the most frustrating of all: Your children. If the two parties involved in a divorce can respect each other and settle on a fair deal, everybody wins. Unfortunately, the opposite frequently occurs in the form of one or both parents trying to take too much of their child’s time.

If you are considering a divorce, you should know where you may hit a snag in your proceedings. While that could be anywhere, child support, alimony, physical assets, and custody are the most likely to cause friction. That being said, hiring the right St. Louis divorce lawyer will do wonders for your case. Give us a call at (314) 801-8488 and see why many St. Louis residents trust the Betz Law Firm.

Aug 2, 2019 @ 3:43 pm

6 Experts You May Hire During Your Divorce

September 5, 2018 by David Betz

Aside from your attorney, there are quite a few professionals that could potentially play an important role in your divorce.

Most people understand that going about their divorce alone is a bad idea. As a result, they will typically reach out to an experienced divorce attorney. However, aside from your attorney, there are quite a few professionals that could potentially play an important role in your divorce.

CPA

A CPA (certified public accountant) plays the role of sorting through you and your spouse’s shared finances. This results in you getting an accurate idea of how much money and assets you share. The primary documents that they use are tax returns, loan agreements, and mortgages. This type of expert is especially crucial in the case of one party being self-employed. The reason is that self-employment leads to a more complicated financial situation.

Forensic Accountant

While a CPA is sufficient for typical divorces, under certain conditions, you may want to bring in a forensic accountant. What makes them different than a typical accountant is that they specialize in the investigation of finances, rather than merely compiling them. The most common scenario where you might use a forensic accountant is if you believe your spouse is hiding money or assets.

Vocational Evaluator

Sometimes, the party that is ordered to compensate the other spitefully decides that they do not want to pay benefits anymore. The solution they come up with is purposely losing their job or working a job that underpays them. If you suspect this is the case, you can hire a vocational evaluator and see if they agree. This opinion can be used in negotiations or court.

Child Custody Mediator or Evaluator

As you might imagine, negotiating child custody is one of the most contentious portions of the divorce process. Often, it is so difficult that a mediator or evaluator is brought in. A mediator counsels both sides and helps them come to an agreement, while an evaluator will gather evidence and make a report on the situation.

Property Appraiser

To split your assets reasonably, you need to understand what they are worth. This applies to everything, from something as simple as a piece of furniture to something critical like the value of your home. Getting a professional appraisal helps you ensure fair treatment.

Retirement Plan Expert

Another area that can get confusing is retirement assets like 401 (k) accounts and pensions. To help you understand the legality of these assets, you can hire a financial expert that specializes in retirement plans.

Though divorce can be a frustrating and taxing experience, having the right team supporting you makes all the difference. That starts with a St. Louis divorce lawyer, but it can extend to many different experts, depending on your needs.

Contact The Betz Law Firm today for a free 30-minute phone consultation by calling (314) 801-8488 or by filling out our online contact form.

Aug 2, 2019 @ 3:53 pm

Why You Shouldn’t Rush Through the Divorce Process

August 16, 2018 by David Betz

Understandably, many people want to get their divorce over with as quickly as possible. Unfortunately, this can end up costing them in the long run.

Deciding to get divorced is a decision that comes with a lot of sadness, frustration, and complexity. This swirl of emotions sometimes gives many people an attitude of wanting to get it over with as quickly as possible. Unfortunately, this can end up being costly in the long run. The best way forward is to consult with a St. Louis divorce lawyer that will take your case forward quickly, but slowly enough to not sacrifice quality.

Why People Rush

High Levels of Emotion – Divorce is undoubtedly an emotionally taxing experience. Sometimes, people will sacrifice what they deserve to get closure sooner.

Being Overly “Polite” – Sometimes a person will still have a great deal of respect for their partner and agree to rush the divorce. While this is well-intentioned, it is ultimately unwise.

Not Having a Lawyer – If you don’t hire a lawyer, there is a high chance you will be taken advantage of. This usually comes in the form of an opposing lawyer pressuring you to take a bad deal.

Reconciliation

Though it might seem impossible now, there is a chance that you and your partner will call the divorce off. If you choose to reconcile, you will want to still be married when you do. A rushed divorce will make this more complicated.

Not Accounting for Certain Assets

When you marry somebody, your assets mix. Dividing them takes a very long time, and hurrying through it often leads to error. You are going to want to negotiate what is important to you. However, if you rush, you might miss some entirely. That could mean going back to the negotiating table later on in your divorce, or forfeiting that asset entirely.

Weakening Your Case

If your divorce ends up being seen in a courtroom, your lawyer will need to have every piece of information needed to argue your case. If you go too quickly, your legal team will not have the time to compile evidence and plan a strategy for you. When you go to court, you will not be prepared to argue your side of the divorce. The result of this will likely be a bad deal.

Complexity

When you marry somebody, you fuse your life with theirs. That means that you share money, property, belongings, and even children. Each one of those aspects is incredibly complicated and must be unpacked carefully. Think about each of them, how important they are to you, and how painful it would be to have them taken away from you.

Ultimately, the best reason to take your divorce slow is that you’re dealing with incredibly important issues. You are splitting up almost everything that matters to you, and if you lose those things, you will be filled with regret. Your best bet for avoiding any heartbreak is speaking with a competent St. Louis divorce attorney. Their experience will allow you to proceed through your divorce quickly but without mistakes. The result will be you getting the divorce deal you deserve.

Call for a FREE 30 Minute Phone Consultation

(314) 801-8488

Aug 16, 2018 @ 1:36 am

How are Assets Divided in a Divorce in Missouri?

March 5, 2018 by David Betz

If the two parties aren’t able to come to an amicable arrangement, the court steps in and makes the decision for them.

For some couples, living together harmoniously simply isn’t possible. If you are in the midst of a divorce in Missouri, the ideal situation is that you can part ways amicably. Sometimes that means knowing what your rights are before you begin to divide your assets.

Missouri Property Division Laws

According to property division laws in Missouri if the divorcing or separating parties aren’t able to come to an arrangement regarding the division of their property and other assets, the court steps in and makes the decision for them. Once the court determines which assets are considered marital property, then it must be decided how to divide the assets between the two parties. This occurs when the parties cannot reach an agreement between themselves.

Marital property

Marital property is property that you acquired after you got married, which is therefore equally owned by both parties. That does not mean that you can’t negotiate for the things that mean the most. Even if they are in one spouse’s name and not the other, that doesn’t negate the fact that they were purchased with “marital funds,” meaning you were together. Marital property is divided 50/50 in the state of Missouri unless you and your spouse can come up with another arrangement yourselves.

Non-Marital Property

Non-marital, or separate property, is property that belongs to just one party instead of both. The spouse who owns the non-marital property is usually the one who gets to keep it. If you owned something before you got married, then it is still considered yours. Other items that fall under non-marital property are an inheritance or other property that was explicitly given to one spouse or the other, regardless of the timeline.

Commingling Property

Commingled property is property that might have belonged to one party but was combined with the other during the marriage. Typically, the marital home – regardless of who paid for it – falls under commingled property, and therefore is divided 50/50.

St. Louis Divorce Attorney

Our legal practice is focused exclusively on family law and consists of a staff of experienced professionals who have immense knowledge of all the legal issues that can arise during a divorce. Hundreds of clients have been assisted with the issues of child custody, visitation, and support, as well as alimony, division of joint assets, and much more.

Contact The Betz Law Firm today by calling (314) 801-8488 or by filling out our online contact form. As a firm, our goal is to help you find the answers to your questions and to begin the next phase of your life with as much ease as possible. We are dedicated to providing our clients and their families with kind, personalized, and professional legal representation throughout the entire divorce process.

Jun 24, 2019 @ 5:04 pm