Assets, Debts and Other Financial Considerations in Divorce

People in North Carolina who are getting a divorce will need to take some financial issues into account. In addition to an attorney, they may also want to work with a financial professional, such as a certified divorce financial analyst, to help guide them through some of the more complex aspects of property division.

It is important that the value of assets is assessed accurately, particularly for the spouse who is not working or who earns less since those assets could help ensure that person’s financial security after divorce. Taxes can make some assets worth less than they initially appear. For example, people often must pay taxes on retirement accounts when they make withdrawals, so a money market account of equal value might actually be worth more.

If there is a family home, there might be a lot of emotion attached to it. However, couples will still need to make practical decisions such as who will pay bills associated with it until they sell it and how they will divide proceeds or debts. Other types of debts may need to be split as well. Finally, one person may be required to pay child support, alimony or both to the other. Alimony will not be taxed or tax-deductible for divorces finalized after 2018.

Couples have a choice to negotiate the divorce settlement and property division on their own or go to litigation. Usually, negotiation is less expensive and less time-consuming, and it leaves the outcome more in the control of the couple. However, it is important that people do not rush through negotiations or agree to arrangements that put them at a financial disadvantage because they want the process over with quickly. Attorneys may assist in negotiation. If one person refuses to cooperate or negotiations are unsuccessful for other reasons, attorneys may also help with litigation.

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