What Are the Biggest Mistakes People Make in Asset Division and How to Avoid Them

Asset division is perhaps one of the messiest parts of a divorce, especially if you’re going through an emotionally charged separation and your spouse is hiding things. Like many states, Utah law requires an equitable division of marital property. 

However, this doesn’t mean you and your spouse can divide everything 50-50. If you don’t know how the division of assets in a divorce works or try to go it alone, you could lose what’s rightfully yours. 

As one of the leading asset & property division attorneys in Salt Lake City, we’ve seen the same avoidable mistakes hurt Utah couples over and over. If you’re facing a divorce, knowing what not to do is just as important as knowing what to do. 

Let’s break down the biggest slip-ups Utahans make during the division of assets in a divorce and how you can avoid them.

Mistake #1: Not Knowing What Counts as a Marital Asset

A common mistake is thinking you only have to split what’s in your joint bank account. Wrong. In Utah, any property acquired during the marriage is usually subject to equitable division, even if only one spouse’s name is on it.

How to Avoid It:

Work with an asset division lawyer to identify everything, including homes, retirement accounts, vehicles, debts, and even frequent flyer miles. This helps you prevent surprises or unfair outcomes in court.

Mistake #2: Trying to Hide Assets

Some people think they’re being smart by transferring money to family or opening secret accounts, but Utah courts don’t take this lightly. If you get caught, it can backfire badly.

How to Avoid It:

Be transparent. Judges can award more to the other spouse if you hide assets. Work with a division of assets attorney to handle disclosures the right way. They can save you from making this mistake knowingly or unknowingly. 

Mistake #3: Ignoring Debts

Divorce isn’t just about who gets what; you also divide what you owe. Failing to factor in shared credit cards, car loans, mortgages, or medical bills could leave you responsible for debts you didn’t expect.

How to Avoid It:

List all debts when working with your asset division lawyer. Make sure they’re accounted for in your divorce agreement so you’re not stuck with a pile of debt later.

Mistake #4: Letting Emotions Lead the Way

Clinging to the house just because it holds memories or refusing to part with a vacation cabin can be a costly move. Holding on to high-maintenance assets you can’t afford post-divorce could set you up for failure.

How to Avoid It:

Keeping the house might sound good, but can you cover the mortgage, taxes, and repairs? Think logically and not emotionally when dividing your assets. Work with your attorney to draw up a plan for the division of your assets. They can help you shortlist the ones you can keep and actually benefit from. 

Mistake #5: Not Valuing Assets Properly

Do you know how much your spouse’s retirement plan is worth? Or the current market value of your home? People sometimes guess what things are worth or agree on a number to simply get it over with. But that’s a costly mistake. Homes, jewelry, art, and businesses can swing thousands of dollars in value, and guessing only puts you at risk.

How to Avoid It:

Hire a professional to appraise your high-value assets like real estate, businesses, or investment accounts. If you hire an attorney specializing in the division of assets, they’ll know which experts to involve. 

Mistake #6: Forgetting About Retirement Accounts

Retirement savings are often one of the biggest marital assets. But many spouses forget about 401(k)s, pensions, or IRAs when dividing property.

How to Avoid It:

In Utah, you can use a Qualified Domestic Relations Order (QDRO) to divide retirement assets without penalties. Your asset division lawyer can help you get this done right.

Mistake #7: Overlooking Tax Implications

Some assets look equal on paper but aren’t when taxes hit. For example, $100,000 in a checking account is worth more than $100,000 in a retirement fund, which may be taxed when withdrawn. If you ignore tax implications, you may end up owing thousands to the IRS. 

How to Avoid It:

Work with a tax advisor and your asset division lawyer to understand how taxes will affect your share. You want a split that’s truly fair after taxes, not just on paper.

Mistake #8: Rushing Through the Process

People who want the divorce over fast often agree to anything just to move on. That’s a mistake that could cost you for years.

How to Avoid It:

Take your time. The division of assets and liabilities in a divorce can affect your financial future long-term. Don’t let emotions pressure you into a rushed or one-sided agreement.

Mistake #9: Not Getting Legal Help Early

Trying to handle your divorce without legal help is risky. You may miss rights you didn’t know you had or agree to things that aren’t enforceable later on.

How to Avoid It:

It’s best to get an asset division lawyer involved as soon as possible, even if you’re going for mediation. A professional lawyer knows what to ask for, how to negotiate fairly, and what needs to be included in your final agreement.

Mistake #10: Ignoring Future Needs

Most Utah couples don’t think about how the property division will affect their future, and that’s another mistake. The division of assets and liabilities in divorce affects your credit score, future housing eligibility, and retirement security. You must think this decision through. 

How to Avoid It:

Always think long-term. Can you cover the mortgage five years from now? Will you have enough for retirement? A professional asset division lawyer can help answer all these questions. 

Final Thoughts: Don’t Go Through Asset Division Alone

The division of assets and liabilities in a divorce, even if you were married for a couple of years, could be more complicated than you think. This decision shapes your financial future, and one small mistake can cost you thousands or more. 

At Henriksen & Henriksen, we specialize in the division of assets and liabilities in a divorce. Our lawyers have helped many clients protect what matters most. If you’re worried about your divorce settlement or not sure where to start, call (801) 521-4145 or fill out our online form to speak with our attorneys.