To improve your post-divorce finances, there are steps to take both before and during the divorce. This includes the obvious ones like removing your soon to be ex-spouse from your credit cards, deciding whether to sell the martial home, and creating a budget that reflects your future lifestyle. In addition, you should keep in mind how you will split any marital debt and future college expenses. This article provides some useful tips.
After a divorce, you have a greater than 50% chance of remarrying. Finding someone to share your life with is rewarding emotionally and physically. But, it can also improve your finances by allowing you to share expenses and improve your lifestyle. This is especially important for people that get divorced later in life. Before tying the knot again, you should take a breath and consider these tips as they may prevent problems in the future with your new spouse and your family.
Before 2019, the payor deducted alimony on a federal tax return and the recipient paid taxes on it. Today, alimony is non-deductible and non-taxable in the manner of child support. However, there are strategies that can be used to minimize taxes while negotiating a settlement. For high net worth couples, these strategies include transferring retirement and taxable assets that will produce the income equivalent to the proposed alimony.
This article provides more details on these and other strategies which should be reviewed with a certified divorce financial analyst.
Some couples have unequal responsibilities when it comes to their finances. One spouse may be the high earner and make the investing decisions where the other is the lower earner and pays the bills. Clearly, the spouse who makes the investment decisions has more control and knowledge of the balance sheet and net worth of the household. However, the other spouse can empower himself/herself with knowledge regarding income and investments by obtaining and reviewing earnings statements, bank and brokerage statements, and tax returns. Even so, there are times during divorce, when a spouse may try to deceive the other spouse.
In this article, the author provides some tips on how to find hidden assets.
A job loss during divorce may make negotiations for spousal or child support more complicated but not insurmountable. If you or your spouse lose a job, the divorce agreement can dictate a formula or percentage that will be used to compute the support payments after re-employment.
This article provides tips and explains issues to consider when dealing with job loss during divorce.