You have a lot of facts to learn and information to retain while navigating divorce. Which financial potholes must you look out for while splitting from your current partner?
Forbes dives into common monetary considerations divorcing couples must remember. Learn how to protect your financial health while transitioning to your life’s next chapter.
Assets and taxes
When dividing assets and deciding which you want, consider the tax consequences of individual assets. For instance, retirement accounts require you to pay income taxes before you receive distributions. which impacts their value in the divorce settlement. Consider speaking with a financial professional experienced with helping divorcing couples divide assets to understand what you stand to gain (or lose) by fighting for specific accounts and possessions.
Do you want to keep the marital home? If so, take time to think about the short- and long-term costs of owning a property with a single income. Should you later sell the home, you absorb the full tax implications. Depending on whether you sell the property for a profit or at a deficit, you and your soon-to-be-former spouse must decide how to split the proceeds or debts.
No matter who maintains ownership of the marital home, divorcing couples must think about handling joint debts. Other than residential properties, a person going through the divorce process must understand how to take care of shared credit card bills and any loans shared with a soon-to-be-ex-partner.
Getting the full financial picture of divorce helps you make moves you feel comfortable with. Educate yourself now so you do not pay for hasty divorce decisions later.