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Divorce isn’t simply couples going their separate ways. In fact, there are many financial repercussions that couples do not realize in the beginning until they have filed and are working through mediation. Whether you are thinking about filing divorce or you are already in the process, here are five common money issues that must be addressed.
A divorce, especially with money involved, can become a sticky situation. While you and your partner may reach an amicable agreement, other cases can require the expertise of a divorce attorney in Miami to ensure your best interests and future are protected.
The Division of Debts
Most married couples accumulate some form of debt. Whether the debt is credit cards, car loans or a mortgage, these debts need to be divided during the divorce. Deciding who is responsible for what is often the most difficult part of the divorce process. Do not leave the decision to your partner. While you may trust him or her now, divorce can often create tension and strong emotions that result in a partner neglecting debts out of spite.
Dividing debts can be easier to:
● Jointly pay off the debts before filing for divorce.
● Agree to assume responsibility of debt accumulated before the marriage as his or her own.
● Agree to assume responsibility of specific debts and include them in the divorce agreement.
● Share responsibility for the debts.
Taxes
While you may think of the obvious financial issues during divorce—i.e. bank accounts, debts, mortgages, etc.—you may forget about taxes. Taxes could cost you thousands if they aren’t handled properly. Some things you will need to consider include:
● Who claims the dependent(s)—parents can alternate dependents each tax year
● Who claims Head of Household
● Who claims the divorce fees, which are tax deductible
● Ensuring maintenance payments (such as child support and alimony) are tax deductible
Retirement Plans
Both spouses may have their own retirement plans, which make dividing those assets easier. But, you will still need to change the beneficiaries on those retirement plans to someone other than each other.
Child Support and Spousal Support
Child and spousal support can be a messy situation for unprepared couples. Child support and spousal support amounts are based on gross income and lifestyle. Also, child support amounts will be based on the number of hours the noncustodial parent has with the children. Therefore, it is important to consult with a divorce attorney in Miami regarding child support and spousal support before making any assumptions.
Assets
The division of assets is another difficult situation that can cause conflict. If a couple has joint assets, such as investment accounts, properties, or other forms of investments, you will need to decide how these assets are split. Consult your attorney about tax implications for these assets, as you may end up paying taxes if you have to sell assets as part of the divorce.
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Consult a Divorce Attorney in Miami Today
There is a lot to remember and consider during a divorce, but one of the most important decisions you can make is how to handle finances. Protect your financial future and the future of your children by consulting a divorce attorney in Miami today. The Law Offices of Aliette H. Carolan offer no obligation consultations and would love to discuss your options. Contact us today at 305-358-2330.