Divorce takes a toll on you emotionally, physically, and yes, financially. During a legal separation, spouses are forced to make decisions that may make a major impact on current and future finances. If you’re currently in this situation, don't go into it uneducated. To understand some of the basics, here is a blog that covers some of the biggest financial concerns of a divorce.
Nevada is one of only nine states where it is presumed by law that property should be equally divided. This means that all income earned and property acquired by either spouse during the marriage is community property. Although many people come to a relatively amicable agreement about the division of property, if there is disagreement about one or more items, there are a number of ways to decide who gets what. Bartering is one common example, where one spouse takes certain items in exchange for others. Another method is to sell the marital property and divide the proceeds equally.
Dividing debt is usually more difficult than dividing property in a divorce. In order to do this, you need to know how much you owe. Even if you trust your spouse, order your joint credit report from each of the three credit reporting agencies. People are known to run up debt without their spouse's knowledge, especially when they're contemplating leaving.
Go through the credit reports and identify which debt is shared and which is your spouse's only. Once you've identified your debts, decide who is responsible for what debt. You can do this by paying off the debts now, agreeing to take responsibility for the debts in exchange for receiving more assets from the division of your property, agreeing to let your spouse take responsibility for the debts in exchange for receiving more assets from the division of property or agreeing to share responsibility for the debts equally.
Many spouses overlook the tax implications of their divorce, which can be costly. A certified public accountant (CPA) can help you answer the following questions
- Who gets the tax exemption for dependents?
- Which attorney fees are tax deductible?
- How can you avoid the mistake of having child support be non-deductible?
Retirement Plan Issues
Retirement savings are usually split in half. The primary issue with the division of retirement assets is that while the assets may or may not have been sufficient for your joint retirement needs, your individual retirement needs are probably greater. As a result, you must consider how these assets are divided, and how you can secure your financial future in retirement.If you’re going through a divorce, please contact our Henderson family lawyers at McDonald Law Offices, PLLC to schedule a free consultation. Call (702) 850-8004 or contact us online for more information.