Money Issues to Remember in Divorce
Posted on Mar 18, 2015 11:50am PDT
We all know that marriage requires an emotional investment, however, even if spouses maintain separate bank accounts in a marriage, that doesn't change the fact that marriage is a huge "financial investment."
If you're getting divorced, we can guarantee that money matters will be a key focus in the discussion. Whether you're married to a billionaire, or you're both full-time workers, when it comes to the house, medical bills, retirement accounts, auto insurance policies, and paying children's tuition, money can be a hot topic of debate.
Even once you two have successfully separated your households, you could still encounter money problems stemming from your former union – ranging from unpaid debts, to personal loans, to credit card balances, and alimony so the lower-earning spouse won't fall into poverty due to the divorce.
If divorce is on the table, but you haven't taken any action yet, we highly recommend contacting a Nassau County divorce attorney from Jason M. Barbara & Associates, P.C. so we can explain which laws apply to your situation.
Money Matters You Need to Weigh
Aside from the standard division of property and debt under New York's equitable distribution laws, here are some important money matters to consider when getting divorced:
- The tax consequences of alimony or spousal support: the receiving spouse is taxed on their monthly maintenance, while that is deductible for the paying spouse.
- Which spouse will claim the children as dependents on their tax return?
- Who will fund college costs?
- Will life insurance be included in the divorce decree?
- Will the court award one spouse a portion of a retirement plan?
- Remember to change the beneficiary on your own retirement plan.
- Once you're divorced, don't forget to immediately create a new estate plan.
Once the divorce is over, you will need to rebuild your financial life as a single person again. You will want to take a step back and reevaluate your job, your savings, where you live, and what steps you need to take to be in an optimum financial situation.
By taking things one day at a time, and being proactive about your financial health, the next chapter of your life could be very rewarding.
To learn how we can help you navigate your divorce, contact us for a free case evaluation!