Dealing With The Money Questions In Divorce
If you think divorce is tough on the heart and mind, you’re right! Another place divorce takes its toll is in the pocketbook. You’re going to be making a lot of difficult decisions during this process, all of which will ultimately impact your financial well-being now and down the road. Protect yourself by getting the legal counsel you need from an experienced Boca Raton divorce attorney.
Property and Debt Division
Florida is an equitable distribution state, meaning the courts strive to ensure both parties get a reasonable, if not necessarily equal share of the pie. Unfortunately, divorce sometimes is a tempting time to hold back financial information from a spouse in an effort to keep a larger share of financial holdings. Avoid dishonest—and illegal—behaviors and stay on your toes so you can detect if your spouse is trying to pull a fast one.
Keep Uncle Sam in Mind
Something that slips past many in the turmoil of divorce are the tax implications of your financial decisions. Some important questions you’ll need to address might be:
- Whether you or your spouse gets to claim the kids as dependents—some couples alternate years, others split who gets each child, and still others give the deduction to one parent until age 18.
- Which of you will be claiming Head of Household status;
- What fees related to the divorce may be tax deductible;
- The impact of child support and/or alimony on taxes;
- The impact of early retirement or Social Security withdrawal on your income;
- Whether selling the family home will have tax implications.
About Those Retirement Plans…
Typically a higher earner’s retirement plan is split in a divorce. If you can make an early retirement withdrawal, what do you have to do to evade the 10 percent penalties? Understanding the laws can make a huge impact on whether you put that cash away for your own retirement or spend it right away.
Prepare for the Future
Whether you are paying or receiving child support, it’s important to think about myriad costs that are down the road. In addition to childcare, medical, educational, housing, and enrichment costs you are currently dealing with, think about the cost of a higher education after high school. Other big expenses that will have to be addressed include weddings, relocation expenditures, and the ever-present unexpected calamity that pops up.
At WiseLieberman, our experienced divorce attorneys are prepared to help you understand all the financial implications of your choices in your divorce. Is it a good idea to trade the house in order to keep your pension? Should you sacrifice the boat in order to pay off debt? These, and other issues can be highly impactful to your future. To discuss your options, schedule a confidential consultation in our Boca Raton office today.