Below, we discuss some of the most important assets you want to make sure you do not overlook on this list:

Foreign Property

Whether you’re going through divorce or coming up with an estate plan, you absolutely must list any foreign property such as timeshares. It does not matter how much time you spend each year there—this is an important, valuable asset which will require valuation, re-titling, and, in general, will need to be addressed.

Collectibles

Any personal collectibles are also important to list. This doesn’t just cover valuable antiques, but also coins, stamps, fine china, etc. Your attorney may need to work with an appraiser to ultimately determine their value. Keep in mind that, even if you don’t think your ex has any interest in these items, they will likely expect it to be addressed in terms of overall assets and what they receive.

Club Memberships

Memberships—even if they are for only one spouse—also must be taken into account, as many of them require you to make a purchase before you submit monthly payments for your membership, and whoever gets to keep them gets that value.

Frequent Flyer Miles

Frequent flyer miles are also important. These accounts accumulate miles, which can be of significant value, and with some credit cards, even translate to cash value.

Settlements

Any existing or prospective settlement funds must also be taken into account, even if one spouse is still involved in litigation that could result in a future award.

Raffles & Lottery Tickets

Any raffle or lottery tickets purchased that could result in any kind of prize—not just a cash prize, but a television, trip, etc.—also need to be taken into account.

Pets

What happens to a couple’s pet in the event of divorce is a topic we frequently deal with our clients. Regardless of whether the pet was purchased and any monetary value, our four-legged friends also hold a significant amount of emotional value.

Intellectual Property

What about additional property that may not be as tangible as, say, a house? For example, intellectual property—copyright, patents, trademarks, etc. These are just as relevant as valuing every aspect of a business that was started during a marriage. Any royalties that will be paid over time also needs to be taken into account.

Other Assets

Other assets include but are not limited to:

• Cemetery plots;
• Digital assets & downloads;
• Photographs; and
• Tax refunds.

Contact Our Florida Divorce Attorneys to Find Out More

If you live in Florida and have any questions about divorce, contact our experienced Orlando divorce attorneys at Arwani Law Firm, PLLC today to find out about our services and how we can be of help.

Resource:

jdsupra.com/legalnews/13-assets-you-shouldn-t-forget-in-your-90885/

https://www.arwanilawfirm.com/what-is-the-biggest-real-estate-mistake-you-can-make-in-divorce/

One of those valuable assets includes miles accumulated on credit cards. As divorce attorneys, we frequently see instances where one individual was able to accumulate significant miles by using their personal credit for work purposes and obtaining reimbursement from their employer. While this may seem minimal and unimportant, in fact, these miles can translate to significant financial resources, and even affect one parent’s ability to take the couple’s children on vacations. This issue is only exacerbated when that same individual also has a significantly higher income, as that affects credit card limits, which can then lead more miles being earned, etc.

Make Sure That You Account For Miles

Miles earned during the marriage are marital assets, and are thus subject to equitable division. Therefore, yu and your attorney should make sure that you are compiling and keeping a history of miles accumulated and their use in preparing your case, as these miles must be accounted for in balancing equities, and with good reason; for example, if one child attends college far away, having a lot of miles can affect the ability for one parent to travel to that child and thus spend more time with them.

How difficult is it to determine the value of accumulated miles in divorce? Some miles programs (such as Capital One) assign actual dollar ratios to miles, while others have a system based more on a running tally that corresponds to being able to travel a certain distance for free. Keep in mind that, if it is extremely difficult to assign value to the miles, it is possible for the court to balance out one person getting the miles by giving the other person other marital property.

Timeshares

Other assets that we often see overlooked—perhaps because people just assume that they are separate property—are timeshares. However, like miles, these are important assets that affect quality of life, especially when it comes to being able to provide certain benefits for the family.

Employment Benefits & Loans to Relatives

Finally, keep in mind that there are often employment benefits beyond retirement accounts that should be taken into account, such as insurance benefits for life, as well as family loans that must be addressed in the same way that every other debt incurred during the marriage is.

Contact Our Experienced Florida Divorce Attorneys to Find Out More

When it comes to going through divorce, you don’t just want to work with any family law attorney—you want to work with a firm that focuses on divorce and family law, and has significant experience in working with individuals and ensuring that their best interests are represented. Contact our Orlando divorce attorneys at the Arwani Law Firm, PLLC today to find out more about our services for clients in Florida.

Resource:

natlawreview.com/article/counting-miles-and-other-hidden-assets-divorce

https://www.arwanilawfirm.com/what-are-the-basic-elements-of-a-prenuptial-agreement/

In other words, if you are just separated but not divorced, there are a number of financial and tax implications you should be aware of, for both legal and tax purposes. Thus, if you are separated but technically staying married in order to benefit from health or tax benefits, you should still be aware of potential repercussions, as we discuss in greater detail below.

Tax Repercussions

If you choose to file a joint return, know that liability is joint and several. In other words, the IRS can come after either or both of you for any deficiencies, including your spouse failing to report all of their income.

Estates & Inheritance

In addition, if you are separated but not divorced, inheritance rights are preserved. This means that, regardless of changes that you might make to your will, what is required, by statute, will be the default.

Thus, for example, Florida abides by equitable distribution, meaning that marital property acquired during the marriage with marital funds is divided equally. In other words, your spouse still has rights and is entitled to a certain portion of the estate, whether you have a will or not.

Moving Money Around

What many people do not realize is that a formal complaint for divorce is the only way to prevent a spouse from changing title to assets. This is because, when you file for divorce, an order is automatically issued prohibiting each spouse from moving money around.

Deciding Between Separation & Divorce

In deciding whether you want to stay separated or obtain a divorce, it may be helpful to consider the following:

• Figure out what your overall goals are, both personally and financially;
• If you share children, what do you envision your arrangement will be?;
• Do you have access to all of the relevant, important financial documents, including bank and brokerage statements, mortgage documents, retirement account information, tax returns, etc? Take a look at what your budget might be.
  

Florida Divorce & Family Law Attorneys

Don’t try to figure all of this out on your own. Contact one of our experienced divorce and family law attorneys at the Arwani Law Firm, PLLC today to discuss your options, and how to plan ahead as much as possible for separation or divorce. There are important changes coming in 2019—including the elimination of the alimony deduction—therefore, delaying could only harm your circumstances.

Resources:

accountingtoday.com/news/making-divorce-less-taxing

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html

Are They Separate Or Marital Property?

One of the initial questions people have is whether inherited IRAs start out as separate or marital property. In general, inheritance is separate property, even if it is received during the marriage. However, if that separate property is commingled with marital property, it can lose its separate status and become marital property (for example, a home that is inherited but retitled and paid for jointly by each spouse).

The same rule applies to retirement accounts: if it was acquired during the marriage—even if it is in only one person’s name—it becomes marital property if any funds were contributed to it from the couple’s earnings during marriage.

However, inherited IRAs are a different story: They cannot be jointly owned, and new contributions cannot be made to these accounts, which seems to indicate that they belong in the “separate property” category.

Still, the definitive answer ultimately lies in state law and how it treats inherited IRAs: For example, in Florida, inherited assets generally remain with the individual who inherited them unless those assets were commingled in name or used to support the marriage. Questions can still come up regarding any appreciation on the inherited IRA fund during the marriage—whether this becomes marital property can sometimes depend upon whether account management was active or passive.

The “Rules”

Pursuant to a court order and divorce agreement, a number of courts have already allowed inherited IRAs to be split up in divorce, and custodians are subsequently accepting the transfers of these inherited IRA funds, signaling a potential new trend in future divorce agreements that could make up for the lost alimony deduction that starts in 2019. A number of couples have decided to use inherited IRAs to satisfy agreed-upon property splits. Couples should work with experienced divorce attorneys to make this an explicit part of the divorce agreement, which includes confirming—with each spouse—that they will be responsible for future RMDs (based upon the percentage that they keep).

Other “rules” to keep in mind when it comes to inherited IRA funds that are split up and transferred after divorce include the following:

• The account retains its inherited status;
• The decedent’s name stays on the account;
• The name of the new beneficiary is added; and
• The required minimum distribution schedule remains unchanged.

Discuss With an Experienced Florida Divorce Lawyer

If you are contemplating or already going through a divorce, you likely have many questions about what you and should not do in order to ensure that you are protected. Contact our experienced divorce and property division attorneys at the Arwani Law Firm, PLLC today to find out how we can help.

Resource:

investmentnews.com/article/20180716/FREE/180719949/can-inherited-iras-be-split-in-a-divorce

There are two ways to make a tax-free transfer of IRA assets during a divorce proceeding: change the name of the IRA to the ex who is receiving it, or directly transfer your IRA assets to the IRA that your ex owns. Below, we discuss the process in greater detail.

Your Divorce Attorney’s Role

It is your divorce attorney’s job not just to draft and review the divorce decree, but also to assist you in actually transferring any IRA funds to comply with the decree. Your attorney can also assist you in ensuring that the divorce decree is specific enough regarding how and when assets are split, as well as who is paying any fees and how. The date in particular is crucial, as some IRA assets fluctuate in value. Any mistakes made during this process can be costly, and sometimes unfixable.

The Process

This is the general process that is followed for the transfer:

• The IRA owner provides a copy of the divorce decree to the IRA custodian;
• The IRA owner completes the paperwork with the custodian, authorizing a direct transfer to the ex (the authorization must come from the owner);
• If the ex does not already have an IRA, they will need to complete the paperwork to establish one; and
• The custodian then moves the funds from the IRA to the ex’s IRA via a trustee-to-trustee transfer.

If this process is followed, there is no reporting to the IRA; Forms 1099-R and 5498 are not required because technically it is a transfer and not a distribution, and there are no consequences to the IRA owner or the ex who receives the IRA assets.

Work With the Right Divorce Attorney

We can’t tell you how many couples end up incorrectly conveying IRA assets to their ex, even if the divorce order specifically states that the IRA transfer must be done “directly” in a “non-taxable transaction” to an IRA in the ex’s name. If an attorney does not ensure that the order is followed to a T, couples can, instead, make the mistake of making withdrawals and assuming they are non-taxable because they were due to a divorce.

If you are contemplating a divorce, ensure that financially-devastating mistakes are not made that could come back to haunt you. Contact our Florida divorce attorneys at the Arwani Law Firm today to schedule a consultation and find out how we can help.

Resource:

financial-planning.com/news/how-to-split-ira-retirement-savings-after-divorce

Because different rules govern different types of retirement accounts and dividing up plans like the 401(k) and pensions is separate from the divorce agreement, you want to make sure that you work with an attorney who is knowledgeable and experienced in drafting retirement allocation documents like these. Not only do the 401(k) and pension assets often represent a couple’s largest source of funds, but if they are not properly divided upon divorce, there can be excessively high penalties and taxes (not to mention an incorrect and unintended amount of the funds going to an ex).

Below, we discuss some tips on how you can avoid making mistakes in dividing up these crucial assets:

Specific Qualified Domestic Relations Orders 

First, if you are entitled to a portion of your ex’s workplace retirement plan (including 401(k)s and traditional pension plans), the only way that you can access your share is via a qualified domestic relations order (QDRO). While the QDRO is based on the divorce agreement (decree), it is also technically separate from it. In addition, there is a separate order required for each retirement account that is subject to division.

You and your attorney will need to carefully examine the QDRO before it is submitted to the court to ensure that any essential elements of the divorce agreement are reflected in it. For example, if funds are being transferred to a rollover IRA, the QDRO needs to explicitly spell that out. Or, if one spouse wishes to receive the money directly instead of transferring it to a rollover IRA, this type of distribution also needs to be specified in the QDRO. Remember that divorce is one of the few contexts in which 401(k) funds can be accessed prior to turning 59.5 years of age without incurring a 10 percent penalty.

Your attorney will also typically need to contact the retirement plan’s administrator to ensure that everything is in place for a smooth transfer of the funds—whether that is happening immediately or at some point in the future. Keep in mind that once a QDRO is in place, the plan administrator must approve it. The transfer will then take place.

What to Watch Out For 

Also keep the following in mind:

• Recipients of 401(k)s should not agree to a change of beneficiary before the divorce is final;
• Make sure your QDRO lists a percentage of the 401(k) assets instead of a fixed amount; and
• Keep in mind that 401(k) assets are protected if the individual has filed for bankruptcy, but IRAs are not.
  

Florida 401(k) & Pension Plan Divorce Attorneys 

If you are dealing with retirement funds in your divorce, you need to speak with an experienced divorce attorney right away to figure out how these accounts will be addressed. Contact one of our experienced 401(k) and pension plan family law attorneys at the Arwani Law Firm today to find out more.

Resource:

cnbc.com/2018/03/07/dividing-401k-assets-in-divorce-can-be-an-expensive-minefield.html

In high asset divorces, which may involve extensive assets and property, it is critical for spouses to determine what is marital property and what is separate property. Florida law provides guiding factors, but ultimately the division of assets is left to the court’s discretion.

According to Florida Statute 61.075 marital property includes the following:

1. Property Acquired During Marriage

Assets such as a house, car, and investment income that are acquired after the wedding day are considered marital property. It does not matter which spouse acquired the property, which spouse used the property or even which spouse’s name appears on the title of the asset. For example, if a spouse purchases a car with their own money and puts only their name on the title, the car is still considered marital property. Simply stated, if the property was acquired during the marriage, it is most likely considered marital property. However, sometimes an asset is purchased with separate monies acquired before the marriage, in this scenario, that asset could be deemed separate.

2. Appreciate and Enhancement of an Asset

Under some circumstances, non-marital property that is acquired prior to the marriage may be enhanced or appreciate in value during the marriage. The enhancement may be the result of one or both of the spouses’ efforts, or because one or both spouses spent marital funds to improve the asset. Although the asset itself was not originally marital property, the difference between the asset’s increased present value and the asset’s value before the marriage is considered marital property.

Take, for instance, a house that is purchased by one spouse prior to marriage. This spouse’s name appears on the mortgage and the title of the house. From the beginning of the marriage, the house is considered separate property, belonging only to the purchasing spouse. As time goes by, both spouses make improvements to the house – new kitchen appliances, wood floors and a new roof – all of which increase the value of the house. The increased value, or the enhancement, of the house would be considered marital property.

3. Spousal Gift

When one spouse gives the other a gift, they do not intend to give it to themselves. Yet that is essentially what happens when they make a gift.

Spousal gifts are considered marital property belonging to both spouses, not just the spouse receiving the gift. It may seem counterintuitive, but the court’s treatment of spousal gifts as marital property can ensure the equitable distribution of marital assets.

Consider a husband that purchases a new car for his wife. Even if he purchases the car with his own money and puts the car title in his wife’s name, it is still considered marital property. The wife may be able to keep the car, but only if the value of the car owed to the husband is offset by some other asset. The law is designed to prevent a windfall going to the receiving spouse.

4. Retirement Benefits

When married couples save for retirement, they envision saving for a future together. They may strategically decide that one spouse will max out his or her 401(k) or IRA contributions while the other puts money toward everyday expenses. To ensure that one spouse is not left behind after divorce, courts will consider these types of assets as marital property.

Vested and non-vested retirement benefits, rights and retirement funds that accrue value during marriage are considered to be marital property. The value may come from a retirement plan, life insurance plan or deferred compensation, and determining the value of the asset can be complicated and require the help of a valuation expert.

5. Personal and Real Property Held as Tenants by the Entirety
   

Property, real or personal, that is held by spouses as tenants by the entireties is presumed by courts to be a marital asset. Tenants by the entireties is a form of property ownership that can only be granted to married couples. To qualify, the property must be granted by the same instrument to a married couple and subject to identical ownership and joint control. Married couples may choose to receive property as tenants by the entirety in order to enjoy some of the protections this form of ownership provides, however, courts will treat the property as a marital asset.

Florida Divorce Attorneys Who Understand Marital Property

If you are going through a high asset divorce and have questions about the division of martial and non-marital assets, you can contact our family law attorneys at Arwani Law Firm ,. We have handled complicated high conflict divorces, and we are confident that our team can provide you with the legal assistance and attention that your case requires.

Resources:

leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0000-0099/0061/Sections/0061.075.html

investopedia.com/terms/m/maritalproperty.asp

deedclaim.com/florida/tenancy-entirety/

Fortunately, high net worth couples can avoid financial pitfalls. With cooperation and transparency, couples can structure divorce settlements in a way that ensures financial stability for them and their children. But it is not uncommon for mistakes to be made. If you are going through a high asset divorce, here are five common mistakes you should avoid.

1. Hiding Assets
   

It may be tempting to set aside a little money for yourself during a divorce (especially when you stand to lose a lot of money), but you should never hide assets from your spouse during a divorce.

Courts require full disclosure of financial assets during divorce proceedings. Regardless, some high net worth individuals attempt to hide money by transferring assets to a business partner, friend or relatives. Such conduct is fraudulent and can badly damage your credibility in court. It is possible that the judge may punish your dishonesty by granting you a smaller share of marital property. Even if you succeed in hiding your assets during the divorce, it is possible that a court may compensate your partner in giving them a higher portion of another asset once your deception comes to light.

2. Failing to look for hidden assets
   

In high asset divorces, it is not uncommon for one spouse to know more about the nature and extent of marital assets than the other. A higher-earning spouse, for example, may wield the most control over investments, property, income and business interests.

Courts can only divide identified assets, which is why it is critical from the outset of a high asset divorce to investigate all assets and income that has been brought into your marriage. Failing to look into marital assets may result in the loss of a considerable amount of money.

To ensure nothing is left off the table during divorce, make sure you have copies of the following:

• Bank Statements
• Tax Returns
• Credit Card Statements
• Financial Records
• Business Records
• Investment Information

If you think there is missing information after searching these documents, you can enlist the help of a forensic accountant to analyze your finances.

3. Rushing To Settle
   

Couples going through divorce are eager to move on with their lives, but rushing into a divorce settlement is a mistake than can lead to years of regret.

Rushing to finalize a divorce settlement, especially for high asset couples, can come with devastating financial consequences. Agreeing to unfavorable terms just to “get the divorce over with” could mean years of unfair alimony payments and child support, and an inequitable distribution of marital assets and liabilities.

Take the time needed to investigate the all of the marital assets. Meet with divorce lawyers to discuss your options. Negotiate to get the money you need to start your life anew. You have limited opportunities to make your case during a divorce, and failing to do so for the sake of convenience can jeopardize your financial future.

4. Failing To Cooperate
   

High asset divorces do not need to be high in drama. Couples that work together during divorce can keep their business out of the courtroom and out of the public eye. Moreover, they can save thousands upon thousands of dollars in court costs and attorneys fees.

When both spouses actively take part in the divorce settlement, they are able to lay the best financial foundation for themselves and for their children. By working together, spouses and their lawyers can come up with innovative solutions that may not be available in court.

Working together can also dramatically cut the costs of divorce. When one spouse drags their feet or fails to compromise, more attorneys fees are incurred. If the matter is taken to court, the divorce could go on for months, even years, and the costs can skyrocket.

Cooperation is the best way to ensure high asset couples receive the financial support they need while keeping the most money within the family unit.

5. Failing To Consider Tax Consequences

Financial decisions made during a divorce can have huge tax implications, especially for high net worth couples. When determining how marital assets will be split, it is crucial that high asset couples meet with an experienced divorce attorney or tax professional to learn how the divorce will affect their respective tax bills.

There are countless transactions associated with high asset divorces. The sale of a marital home. The liquidation of a brokerage account. An early withdrawal of retirement funds. While these transactions may be necessary for the division of marital property, they can lead to a huge tax bill.

In addition, your tax filing status will change. Some of tax deductions that your family benefited from in the past may no longer be an option for you. Charitable contributions, home payments, education costs and business expenses may also be deducted differently following a divorce.

Contact Us Today for Assistance

If you want to avoid these mistakes commonly made during high asset divorces, contact our family law attorneys at Arwani Law Firm ,. We have handled complicated high asset divorces, and we are confident that our team can provide you with the legal assistance and attention that your case requires.

Sources:

ireport.cnn.com/docs/DOC-1074216

investopedia.com/ask/answers/052815/why-are-high-net-worth-divorces-considered-more-challenging-other-divorce-cases.asp

forbes.com/sites/russalanprince/2014/12/01/getting-the-most-from-a-high-dollar-divorce/#38e2a917d66d

Similar articles from other law firms:

claerygreen.com/Family-Law-Blog/2017/October/Common-Mistakes-in-High-Net-Worth-Divorces.aspx

maplesfamilylaw.com/divorce/3-common-mistakes-high-asset-divorce/

scharofflaw.com/divorce/5-common-mistakes-high-asset-divorce/

Businesses and Partnerships

A valuation expert, for example, can help you minimize and avoid costly mistakes during divorce settlements. Valuation experts provide objective, accurate assessments of a couple’s financial assets using conventionally accepted metrics and measures. Valuation experts are commonly staffed accounting firms, but some may also work as consultants. Hiring a valuation expert is a great idea for couples that own a privately held company, family business or partnership interest.

Investments

More specialized knowledge may be required, however, to properly evaluate and divide investment related interests. To find that expertise, you can hire a divorce financial expert with investment management experience. Such experts deal regularly with high asset investment portfolios and can help you navigate complex situations such as the distribution, transfer or the sale of stock.

Life Insurance 

Another unique asset that high net worth individuals should consider during divorce negotiations is life insurance. Many people view life insurance like auto or home insurance and do not see it as an asset. This is a common mistake, and it is one you should avoid.

High net worth individuals may amass significant value in their life insurance with little understanding of how this asset should be accounted for during divorce. Life insurance policies are structured in a variety of ways depending on the needs of the policyholder, and can be difficult to understand. It is not uncommon for couples going through a high asset divorce to enlist the help of a professional with expert knowledge of life insurance to determine the current value of their policies.

For high net worth couples, it is important to take a holistic approach to valuing assets. While doing so may require the help of hired experts, you will avoid leaving money on the table.

Contact Us Today for Assistance

If you have questions regarding your high asset divorce, contact our family law attorneys at Arwani Law Firm ,. We have handled complicated high asset divorces, and we are confident that our team can provide you with the legal assistance and attention that your case requires.

Sources:

forbes.com/sites/russalanprince/2014/12/01/getting-the-most-from-a-high-dollar-divorce/#9dcb3577d66d

forbes.com/sites/jefflanders/2011/04/12/understanding-how-assets-get-divided-in-divorce/2/#375712646e88

floridabar.org/DIVCOM/JN/JNJournal01.nsf/Author/DA1841D80C1681B4852572CA0048700D

In a nutshell, a bitcoin is a virtual banking currency of the internet, and completely unregulated by banks or governments. It’s a line of computer code that essentially holds monetary value (otherwise known as “digital currency”).

One of its supposed advantages is that it can be stored offline in someone’s computer hardware (although the person loses access to it if they lose access to that hardware). However, Bitcoins have also been the subject of numerous scams and, of course, as an asset that can potentially be manipulated, they are thus relevant to divorce proceedings—as we discuss in greater detail below.

Hiding In Anticipation of Divorce

As assets become increasingly digitized, it is arguably easier and easier to stash them away somewhere and/or give them to a trusted friend in order to hide them from the other spouse during divorce proceedings. Bitcoin makes things even more complicated as—like stocks—they could have been built up in the form of a portfolio may have taken years of work and skill. And there’s already evidence that bitcoins are being used to “squirrel away assets” in anticipation of divorce.

Gains over Time or Lump Sum?

In Florida, marital property is to be divided equally upon divorce. Thus, when seeking to divide bitcoins or other cryptocurrency, new questions come up when it comes to splitting up virtual currency; questions such as: should the division be based on the bitcoins’ purchase price, or their current market price? And how do you decide between negotiating for bitcoin gains over the next x number of years, or a taking a lump sum now, in the context of divorce?

Other Things to Note about Bitcoins

If you are concerned about bitcoins potentially playing a complicated role in your divorce, also keep in mind the following facts:

• They can not only be stored on your computer, but also in smartphone and virtual clouds;
• It is easy to transfer them out of the country, and to do so anonymously;
• They may prove challenging for divorce attorneys to track down using traditional methods such as subpoenas, depositions, statements, etc.; and
• Laws and regulations are slow to catch up with technology like this.
  

Contact Our Attorneys for Help Today

At the Arwani Law Firm in Florida, our experienced divorce and property division attorneys are focused on helping ensure that property division as the result of a divorce is in your favor and in accordance with the law. If you are contemplating or in the process of obtaining a divorce, contact us today to find out more about what we have to offer.

Resources:

lifewire.com/what-are-bitcoins-2483146

news.bitcoin.com/divorce-messy-especially-bitcoin/

huffingtonpost.com/entry/hiding-assets-with-bitcoin-in-divorce_us_58ae640ce4b0ea6ee3d035ca