Special needs trusts ease parent worries "Yet a judge could say you're even," Black noted.Liquidating assets should be a last resort in most cases, because liquidation creates a taxable event.If you must liquidate assets, do it within a negotiated, mediated perspective," Black said. equitable distribution Nine states divide property according to community property law, while the rest apply equitable distribution principles.
Money is recognized currency, and you can use it to buy almost everything else, making it completely liquid.
Property such as a home isn't really very liquid, but it can be used as a currency through its sale or liquidation or exchange for similar properties.
Military families struggle with finances "Another example: Most states do not allow a court to 'tax effect' retirement accounts such as pension plans or IRAs," Marcyan said.
"In a collaborative setting, the parties could tax-effect all assets, whether retirement or otherwise, so that asset values are all after tax, and therefore the final result would be fairer to both sides of the case." In addition, courts usually require substantial evidence to establish that any nonmarital asset, such as property brought into the marriage or obtained through gift or inheritance, qualifies as nonmarital, he added.
The reasons property may be liquidated or sold off are extremely varied.