Divorce is the most expensive single financial transaction in most people’s lives, bringing critical concerns that must be addressed right away.
This text contains helpful tips on every aspect of divorce: before the divorce, gathering records, alimony, tax returns, navigating the divorce, amassing funds, hiring an attorney, child support, property distribution, and life adjustments after divorce.
Use joint cash to fix your car and home, buy clothes for yourself and your children, and cover other family costs before you divorce. Rather than fighting with your partner about who should pay these bills later, start your divorce with them already paid.
Learn about your state’s laws. For example, marital assets are split equally between the spouses in some states around the country, which are all community property states. In most other states, the judge can split the assets in any way they see fit.
Safeguard your different assets. Most states consider the money you brought into the marriage, as well as gifts and inheritances, to be yours if you can link them to assets you presently possess. Therefore, save any papers that will be required to verify your specific property.
Borrow from a home equity loan or credit line. Mortgage interest is tax-deductible, and the interest rate is modest when compared to credit card interest rates. However, if you want to maintain the house, make sure you can afford the additional payments after the divorce.
Only withdraw from your IRA if you have no other choice. If you withdraw before age 60, you’ll have to pay a 10% penalty on top of the usual tax.
Consider selling unwanted stuff to make some extra money. To begin, make sure that you both agree to sell the property, for which you might call a reputable real estate agent and that no restraining order prevents you from doing so.
Make a copy of any loan applications if you can’t discover any financial statements. They all include the same information and are signed as a genuine declaration of assets and liabilities.
Make a list of the most important information. For example, include the date you married, the birth dates of your children, the date you divorced, property brought into the marriage, and other events. This list contains vital information for your attorney or paralegal.
Get all of the necessary documents before the divorce is finalised. For example, suppose you require records relating to the rental home you are receiving, the tax basis of your investments, or copies of prior tax returns after the divorce. In that case, your ex may not be very motivated to give them.
Alimony And Child Support
Identify any taxable and non-taxable income for you and your spouse. Begin with your tax return for taxable things, and then go through your check register for any deposits that may indicate non-taxable income.
Keep track of your living costs. Create a list of previous spending and a budget for your future requirements using a budgeting form or software. Keep receipts, cancelled cheques, and other documents to support your claims in court.
Include a clause in your child support agreement that allows for the cost of living adjustments. This will save costly and inconvenient visits back to court to discuss increases in child support payments.
Fees for late payments should be included in your child support agreement. These penalties encourage prompt payment and may eliminate the need to go to court to enforce the agreement.
Hiring A Lawyer
Get the finest assistance you can afford. A low-cost attorney is not necessarily the best deal. An attorney with a cheap hourly rate may make irreversible errors or wind up costing the same amount by taking twice as long to produce paperwork. Furthermore, if you represent yourself, you may make costly mistakes that could have been prevented with proper representation.
Carry out some chores on your own. For example, you may gather documents, file papers, and perform other activities that secretaries, paralegals, or law clerks are hired to accomplish while saving the hourly cost of legal support personnel.
Check to see whether your attorney has ever represented your spouse or your spouse’s company or if they have any other conflicts of interest. Never employ the same attorney as your spouse to ensure that your attorney is looking out for your best interests.
Keep a phone journal of any divorce-related conversations with your spouse, attorney, or any advisors. Include the date as well as a brief synopsis of what was discussed. This journal will assist in eliminating any confusion regarding what was discussed.
Life After Divorce
Keep a copy of your final ruling in a secure location. You may need to refer to it in future court actions, for Social Security when you retire, when writing a will, or decide to remarry.
Make financial plans ahead of time. Begin a savings and investing strategy to save for future goals like college tuition and retirement. It is your job and joy now that you are on your own to take excellent care of yourself.
Contact Franks & Rechenberg. P.C. Attorneys at Law to help with your case.