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3 financial impacts to consider when getting divorced
When two people decide to end marriage, they may think of divorce as a fair solution to get their independence. Impacts on the family and primary financials are some of the major hassles of divorce.
Here are some financial concerns during a divorce:
- How to Split your Assets
Dividing your assets such as real estate property, pension plans, mutual funds and savings bonds during a divorce can be difficult. You need to identify assets each spouse owns and what assets are jointly owned. These assets are not always divided equally and is decided by the court based on the agreement between you and your spouse. You need to consider which assets will be best for your financial security.
- Dividing your Debts
During a divorce, don’t just assume that your debts are being paid off. You should create a list of your debts including mortgages, auto loans, credit cards, loans from retirement plans and other loans. Keep track of any joint credit cards and pay off any outstanding balances. You should be aware that, as long as your name is on the debt, you are responsible for it even many years after divorce.
- Tax Issues
It’s important when negotiating a settlement that you understand the tax implications. These could include changes in your filing status and withholding and impacts on child support or who will claim the children as dependents. Understanding your tax situation can save you from paying higher taxes.Every financial situation is unique depending on how much you save, how much you’re putting away for retirement and how much of your income you are spending for expenses. Knowing how to best protect yourself from the difficulties and losses of separation would be the best step of your strategic defense.
If you want to know ways on how to position yourself for the best possible financial advantage, talk to us today at 07 3290 0393.
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