You have likely heard the phrase “liquidating your assets” before, but you may not be familiar with what it actually means. When an individual or company liquidates their assets, they are selling things of value in order to make a cash profit. This selling of assets is typically done to pay off debts to creditors.  An asset may be anything, aside from cash itself, that has monetary value. This may include, but is not limited to, any of the following: Real estate Property (land) Vehicles Jewelry Art Equipment Electronics Machinery Tools Furniture Financial investments Businesses may turn to liquidation of assets when they are closing or otherwise restructuring. The company’s inventory is usually the collection of assets that are liquidated. Often, these assets are sold at a steep discount.  On the other hand, when an individual liquidates their assets, they may do so to pay off debts or simply because they need some extra cash. A mistake that some individuals make is attempting to liquidate their assets before divorce. Whatever the case may be,  liquidating your assets before a divorce is NOT a good idea.