How do we separate our finances so it is fair for both of us?
After I gather and enter every asset and liability, we will explore multiple division scenarios. Not only am I looking for a fair and equitable division, I analyze the tax status of the assets and look to avoid tax liabilities from the unnecessary sale of appreciated assets. There are many ways to get to a 50/50 division scenarios but considerations like retirement age, cash flow needs and emergency savings are unique to each individual. Here is an example of a scenario that looks equitable at first glance.
However, when I apply an after-tax analysis to this exact scenario, it is apparent this division might not be appropriate for the couple.