Strategies for Negotiating Fair Asset Division in Divorce Cases

Dividing assets during a divorce is often an overwhelming and emotionally charged process. Financial uncertainty mixed with deeply personal emotions can, many times, make it difficult to reach an agreement. However, there are comprehensive strategies you can use to help alleviate stress and pursue a fair and equitable distribution of assets. 

At Abrahamson Law Office, located in Omaha, Nebraska, we have years of experience guiding spouses through the asset division process during divorce. With our understanding of Nebraska's equitable distribution laws, we can help you work toward an outcome that protects your financial future. Here, we aim to outline certain strategies you can use for negotiating a fair division of assets while managing your divorce in Nebraska. 

Understanding Nebraska's Equitable Distribution Laws

Like many states, Nebraska adheres to the principle of equitable distribution when dividing assets during divorce negotiations. This means that marital property is divided fairly, but not necessarily equally. The court will consider various factors, such as the contributions each spouse made during the marriage, the length of the marriage, and the economic circumstances of each party, to determine what "fair" looks like in each unique case. 

However, it's important to note that only marital property is subject to division. Marital property includes assets and debts that were acquired during the marriage, such as income, savings, real estate, retirement accounts, and personal property.  

Conversely, separate property, which typically comprises assets that were acquired before the marriage or through inheritance, is usually excluded from division. However, if separate property has been commingled with marital property, such as being used to purchase a marital home or added to a shared bank or investment account, this property will be considered marital property and, therefore, be subject to division. 

Strategies for Dividing Assets During Divorce

Asset division is a key part of the divorce process. However, dividing marital assets can often be a source of contention. It's essential to have a plan in place for how to approach asset division and employ smart strategies to be upfront about the assets in question and negotiate for an equitable distribution. 

Create a Comprehensive Inventory of Your Assets

When negotiating asset division, create a detailed inventory of all your assets and liabilities. This inventory should include both tangible and intangible items, such as real estate, vehicles, furniture, bank accounts, retirement accounts, investments, business interests, and even debts. It’s essential to be thorough, as failing to disclose or identify certain assets could lead to legal disputes or an unfair settlement later. 

Nebraska law requires both parties to make full financial disclosures during the divorce process, so transparency is critical. Working with a qualified attorney can help you make sure this step is completed correctly and provide reassurance that all your marital property has been properly considered. 

Prioritize the Outcome and Stay Focused 

Not all assets carry the same value in terms of long-term financial stability. For example, while retaining the marital home may seem like a priority, the ongoing expenses of maintaining it might outweigh its benefits. On the other hand, assets such as retirement accounts or business interests can have a significant impact on your long-term financial security. 

Think strategically about your priorities. Which assets best align with your financial goals? What compromises are you willing to make? By keeping your priorities clear and staying focused on the bigger picture, you can approach negotiations with perspective and clarity. 

Consider Mediation or Collaborative Divorce

Litigation isn’t always the best method for resolving disputes, especially when it comes to asset division. Alternative dispute resolution methods such as mediation or collaborative divorce can be valuable tools for negotiating fair outcomes. These methods encourage both parties to work together with the support of neutral mediators or collaborative professionals to reach mutually satisfactory agreements. 

Mediation and collaborative divorce often result in faster resolutions and lower costs compared to traditional litigation. Additionally, these methods allow you to maintain a sense of control over the decision-making process rather than leaving it solely in the hands of the court. This collaborative approach is particularly beneficial for families with children, as it minimizes conflict and promotes cooperation. 

Understand the Tax Implications

Tax consequences are an often-overlooked aspect of asset division, but they can significantly impact the fairness of a settlement. For instance, liquid assets like savings accounts and investment accounts may seem equivalent in value, but capital gains taxes could reduce their actual worth. Similarly, the division of retirement accounts may trigger early withdrawal penalties or tax liabilities if not handled properly. 

At Abrahamson Law Office, we strive to make sure you understand the tax implications of all your proposed asset divisions. The advice of experienced financial professionals can also be valuable during this process to help make sure you’re making informed decisions that protect your financial interests. 

Protect Your Interests through a Qualified Domestic Relations Order (QDRO)

If your divorce involves the division of retirement accounts, such as pensions, 401(k)s, or IRAs, you may need to obtain a Qualified Domestic Relations Order (QDRO) to make sure these accounts are divided correctly and without unnecessary penalties. A QDRO is a legal document that instructs the plan administrator on how to divide the account in accordance with the divorce settlement. 

At our firm, we can assist you in preparing and submitting QDROs as part of your divorce process to better protect your rights to these important assets. 

Be Prepared to Make Reasonable Compromises

When dividing assets, negotiation is a process that requires compromise. While it’s natural to want to hold onto assets that carry sentimental or financial value, divorce settlements are often about finding a balance that serves the best interests of both parties.  

Approaching negotiations with a willingness to listen, understand, and adjust expectations is key to fostering productive discussions and avoiding unnecessary conflict. An experienced family law attorney can advocate for your interests while helping you remain realistic about achievable outcomes under Nebraska law. 

Take Steps to Consider Your Financial Future

While it's important to complete a fair division of assets during the divorce, it’s equally important to focus on your future financial well-being. Take the time to reassess your budget, update your financial accounts, and review your estate plan. This should include steps to modify your beneficiary designations, update your will, and create a financial plan that reflects your post-divorce goals. 

Contact an Experienced Attorney Today

Asset division during a divorce can easily be an overwhelming experience, but it doesn't have to be. By planning for negotiations well in advance and preparing effective strategies that you can use as negotiation tactics, you can better position yourself for success.  

At Abrahamson Law Office, we have the experience and knowledge to guide you through the asset division process, and our attorneys will work alongside you to protect your rights and pursue a resolution that lays the foundation for your financial future post-divorce. 

If you’re considering divorce or are in the midst of asset division negotiations, contact us today to schedule a consultation. Located in Omaha, Nebraska, we serve clients throughout Sarpy County, Douglas County, and the surrounding communities.