Financial Tips To Make Divorce A Little Easier
Divorce can be a mentally crushing experience. You are going through some major changes, and there will be some serious financial issues that impact your divorce, so it’s crucial to think with a clear head in order to achieve the best possible outcomes. Here are a few tips to make this difficult time a little easier.
Listen to your attorney: Your attorney is working for YOU. Not only will it save you money to listen to your attorney’s advice, it will save you time and energy as well. You may hear some advice that you don’t like. That’s OK. A good attorney listens and is constantly maneuvering to achieve your goals. You hired them for a reason–their expertise in this area. So listen.
It doesn’t hurt to compromise: It may really make your blood boil to imagine your spouse walking away with anything remotely close to a win. But the truth is, compromise is an essential part of divorce, so get used to the idea right off the top.
Think about who gets to deduct the kids on taxes: The tax deduction for kids is pretty significant. There’s more than one way to handle that. You and your ex could switch off every other year. Mom may claim one child and Dad the other. Or the custodial parent could claim everyone all the time.
Just about everything is up for grabs: that’s right— things that may never have occurred to you can be divided in a divorce—from your frequent flier miles to the hard-earned bonus you got at Christmas. Just because you earned it, it doesn’t make it yours in the divorce.
Don’t even think about hiding your assets: You might think you’re clever by “inadvertently” forgetting to mention property or assets you have. But on top of angering the court in the event the deception is discovered, you could garner some pretty serious penalties. So put everything out there up front!
Trust your attorney to find assets your spouse may be hiding: If you’re worried that maybe your spouse is hiding assets, know that your attorney has ways to find them. While it may require hiring a forensic accountant, that expense could really be worthwhile in the end.
Get things appraised: it’s important to know the actual value of your property so that in negotiations you don’t have to make assumptions. Sometimes collections like, say, stamps or baseball cards, may be worth more than you’d imagine. Certainly, the same is true for typical assets like your home, jewelry, family heirlooms, and vehicles.
Understand the implications on taxes: You may be asked to trade one asset for another—say the family home for retirement accounts. Be aware of the tax implications that any decision will carry.
Take another look at beneficiary designations: You’re probably not thinking about it as you go through a divorce—but it’s essential that you make desired changes to your life insurance policies and will so your soon-to-be ex won’t recoup your assets in the event of your death.
Getting it Right
There are many, many decisions that have to be made in a divorce. At The Law Office of Hasson D Barnes, our experienced Baltimore family attorneys are committed to working toward the best possible outcomes for you. To discuss your situation, schedule a confidential consultation in our office today.