When dividing assets during divorce, equal and equitable don’t always mean the same thing.
An equal division generally means splitting assets 50/50. An equitable division focuses on what is considered fair based on the circumstances and applicable state law. Depending on where you live, factors such as income, property, debts, the length of the marriage, and each spouse’s circumstances may be considered.
Here’s a Simple Example
Imagine a couple has a home worth $400,000 and $400,000 in retirement savings.
On paper, one spouse keeping the house while the other receives the retirement account might look like an equal $400,000/$400,000 division.
But are those assets truly equal?
The house comes with property taxes, insurance, maintenance, and other ongoing expenses. Retirement assets may have different tax considerations and rules for accessing the money. Looking only at the dollar amounts may not tell you how each choice could affect your life after divorce.
This is where a Certified Divorce Financial Analyst® (CDFA®) can provide valuable insight.
Jodie Lane, Certified Divorce Financial Analyst® and founder of Pathway Divorce Solutions LLC, helps clients look beyond the numbers and understand the potential short- and long-term impact of different settlement options.
The goal isn’t simply to divide everything. It’s to understand what you’re receiving, what it may cost you, and how it fits into the future you’re building.
Before You Agree, Understand the Bigger Picture
If you’re facing important financial decisions during divorce, you don’t have to sort through them alone.
Schedule your 30-minute consultation with Jodie Lane to discuss your situation, ask questions, and gain greater clarity about your options.