What Are The Main Financial Issues In a Divorce?

List: Posted: 12/10/10

Even though divorce has become much more common in recent years, it’s still messy. It’s emotionally messy, and it’s especially financially messy. There are lots of financial issues at stake when it comes to divorce.

 

For instance, you don’t just have to divide up property. You also have to divide up debt. Any debt that is just in one spouse’s name can be left with that spouse. If you share debt, though, you have to decide what to do with it. The easiest option is to pay off as much as possible before the divorce. Another option is for one spouse to take more of the debt but also more of the shared assets during the divorce. The problem here is that if your name is on the debt, you can be responsible for paying it in full, even if your spouse agreed to pay some of it.

 

Another financial issue with divorce is retirement accounts. If you or your spouse has a retirement account, you’re each entitled to half under most state laws. You can pull the money out of a tax-advantaged account in your spouse’s name without paying a penalty if you follow certain laws. This money can be used to jump-start your own account for retirement, or to buy a new home for yourself and the kids after the divorce.

 

Of course, there are also tax issues with divorce. You’ll have to decide who gets to claim your children on the taxes. People who go through divorce need to make sure that child support is tax deductible, as well. Some lawyer’s fees for the divorce process are also tax deductible. Talk to your lawyer or tax professional to see what you need to know about taxes during a divorce.

Divorce & Family Law Attorneys

    Whitbeck Cisneros McElroy PC is proud to be a successful, full service law firm with a strong focus on family law, divorce and mental health law. We provide legal services to Virginia families, individuals and businesses, helping them get the best result possible through experience, aggressiveness and compassion. Our Leesburg family law attorneys have a strong focus in family law and divorce, but also represent clients in areas such as civil litigation, criminal defense, DUI/DWI, traffic offenses, lemon law and election law.

    • 106 Harrison St Se Suite 300 Ste 300
    • Leesburg, VA 20175
    • (703) 997-4982
    • Leesburg, VA 20175
    • (571) 206-0079

      Admitted to Practice: All Virginia Courts, Maryland Courts, District of Columbia Courts, South Carolina State Courts.

      • 203 Harrison St S E Ste H
      • Leesburg, VA 20175
      • (703) 722-0717

        Whitbeck: Leesburg Criminal Defense & Divorce

        • 116-e Edwards Ferry Rd
        • Leesburg, VA 20176
        • (703) 777-1795

        The material in this article is for informational purposes only. The views expressed in this article are those of the author and do not necessarily reflect the views or opinions of Local.com. See Additional Information

        More about local.com Features

        Socialize With Us
        Business Top Searches
        Recently Added Coupons

        Copyright 2017 Local.com Ltd - US Patent 7,231,405 - Privacy Policy - Terms of Service
        Advertise with Us - Claim Your Business Listing - Contact Us - FAQ - Site Map - Some data provided by Acxiom.