If you're headed towards divorce, you can expect money issues to play a huge role in the discussion. Whether you're a millionaire, or one half of a working class couple, trying to sort out health insurance, mortgage payments, spousal support (where applicable), child support, auto insurance, utilities, and let us not forget credit card debt – can be overwhelming and contentious.
Even after you have managed to split one household into two, you could still encounter money problems that stem from your old relationship. These range from joint accounts and debt obligations, to financial support so one of you can get back on your feet, to property division.
If it's not too late, don't dive in to divorce without speaking to legal counsel first. If it's practical, you're better off not doing or saying anything to your spouse until you contact our firm for legal advice.
Money Matters to Think About
The whole experience of a divorce can be somewhat of a whirlwind, especially when one is stricken with grief, shock, or disbelief. The stress of divorce can make it difficult to think clearly sometimes, and this includes financial matters.
In the midst of a divorce, some people have trouble making rational decisions about their finances, or they overlook critical areas due to a lack of knowledge about the law.
Some money issues that you must consider:
- Tax consequences of spousal support on both parties.
- Who will claim the children as dependents on their tax return?
- Life insurance proceeds. Will a policy be included in your divorce?
- Retirement plans and qualified domestic relations order, or QDRO.
- A new estate plan. Make changes right after the divorce.
At Claery & Green, LLP, we can help you understand which money issues you need to consider, and we can help guide along the way. Contact our office today to schedule your free consultation!