Many people view the new year as a fresh start. For some this means coming to the realization that divorce is the best decision for their family and themselves. This new change can be positive for both individuals, especially if kids are involved, and might be what the family needs to start the new year the right way.
However, just because it is the right decision, doesn’t mean there won’t be complications, especially when it comes to finances. If you are considering divorce in the new year, there are some financial considerations to be aware of, so you are as prepared as possible. Understanding the financial concerns that come with divorce will help your divorce this new year feel like a fresh start, rather than a burden.
Mr. David Badanes Esq. of Badanes Law Office on Long Island shared insight into financial considerations for divorce.
- Spousal and child support. While child support and spouse maintenance payments (alimony) are two separate things, they are related and both important considerations during divorce. Which spouse pays and receives alimony and child support will depend on several factors. For alimony, the most significant factor is the income of both parties. Child support will depend on who the primary caretaker of the children will be after the divorce. The details of spouse maintenance payments and child support will depend on your specific circumstances, so you should be prepared for conversations and an analysis of what these will look like when you file.
- Primary residence and other assets. When a couple goes through a divorce, many things are divided between them. Typically, the largest asset for married couples is their home and any other second homes. Another significant asset is typically each party’s retirement funds. Dividing these and other assets is one of the other major issues involved in a divorce.
- Debt does not go away. Determining what happens to a couple’s debt during divorce is a complicated process. Mortgage debt and credit card debt are two of the most common types of debt that will come up in a divorce. The division of this debt will depend on a myriad of circumstances. Assigning responsibility for debt is not simple, so be prepared to have many conversations with your lawyer about this topic when you file for divorce.
- Tax changes. How you file taxes will change after your divorce. While you’re married, you can file taxes as “married, filing jointly,” but this is no longer an option after divorce. Your tax benefits will change afterwards, so it’s important to understand how you should file, either as “single person” or “head of household.” Spousal maintenance payments, mortgage and property taxes, and child support will also affect how you file your taxes. Talk with your lawyer and your accountant if you have any confusion about how to file your taxes post-divorce.
- Retirement plans. When it comes to retirement funds, most of the time, they are usually divided equally between the parties. However, this is not always the case. It is important to discuss this with your lawyer to see what your situation qualifies for..
There are many items to consider when you go through a divorce, and financial considerations are among the most stressful. It’s best to be prepared practically and mentally, and hire a lawyer you trust, so the process will go smoothly. Divorce is an opportunity for a fresh start this new year, but there are steps you should take to make this journey as straightforward as possible.
David Badanes, Esq. and the Badanes Law Office, P.C. provides real-world advice to help you through this challenging time. If you are contemplating getting a divorce, and need an attorney to represent you, call David Badanes and the Badanes Law Office today at 631-239-1702, email at firstname.lastname@example.org or visit our web site: www.dbnylaw.com. The Badanes Law Office has offices in Northport, Suffolk County and Uniondale, Nassau County.