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Are there benefits to selling assets (together) before a divorce?

On Behalf of | May 27, 2022 | Divorce |

The first thing to understand is how dangerous it is to sell off assets during your divorce or without your spouse’s permission. Doing this will likely have devastating consequences, including a lower marital property settlement.

However, before filing for a divorce, your marital property is yours to use as you like if your spouse agrees. A surprising way some couples in high-asset divorces approach property division is to get rid of all, or most, property and then split the cash down the middle.

Is it legal?

It is if you have not initiated divorce proceedings. However, (to reemphasize), it is unwise to do this without spousal permission, even if you have not filed your divorce petition. Your spouse can use these actions against you, probably with success.

What are the advantages of this approach?

The greatest advantage is simplifying property division. Without a plethora of property and non-cash assets, the division process could be much smoother. It may also allow you to settle your divorce sooner than you could with many assets.

Are there any disadvantages?

The greatest disadvantage is that you might not get a fair price for the assets you sell jointly. For example, if the housing climate is unfavorable to sellers, you could lose money on the sale of your home.

The same is true for other marital assets, including:

  • Luxury watercraft
  • Real estate
  • Jewelry collections
  • Art collections
  • Stocks and investment properties
  • Luxury vehicles

If you and your spouse are considering the sale of valuable assets ahead of your divorce filing, consider seeking financial and legal guidance to prevent the loss of money. It is also critical to learn more about Idaho property division procedures and laws if seeking a high-asset divorce.

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