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Financial considerations when getting a divorce

Divorce often has a negative financial effect on people, but this can be particularly true for a person in North Carolina who is a stay-at-home parent or for people who are divorcing late in life. For example, older individuals may want to revise powers of attorney that give a spouse medical and financial decision-making power in case of becoming incapacitated. They may also want to take steps to make sure the soon-to-be ex-spouse does not inherit property in case of death.

Divorced parents still need to provide for their children

According to the American Psychological Association, up to 50% of couples throughout America will get divorced. Divorced couples who had children together will still need to provide for them both emotionally and financially. Therefore, it is important that North Carolina parents work together to create a financial plan that preserves a child's best interests. Fortunately, the framework for such a plan is generally included as part of a divorce decree.

Protecting separate property in a North Carolina divorce

Millennial spouses are more likely to have separate bank accounts than couples from previous generations, according to a Bank of America survey. While some may think that separating finances will help protect property in case of a divorce, this is not always the case. Most assets earned after the wedding will be considered shared property.

Handling student loan debt in a divorce

Many people in North Carolina have significant amounts of student loan debt, even years after they graduated from college or graduate school. The costs of attending college have gone up dramatically, and student loan debt is a major issue for many people. When people decide to divorce, financial concerns can be thrown into sharp relief. After all, the financial changes caused by a divorce can linger on for a long time after the relationship issues were long since resolved. Some people may wonder about how their student loan obligations will be dealt with when their marriages end.

Factors to consider when determining to keep the home in divorce

When North Carolina couples decide to divorce, determining how their marital property will be divided can be a difficult process. In many cases, determining what to do with the family home can be one of the hardest decisions to make, especially if one person wants to keep the family home. Before any final decisions are made, there are some important factors that should be considered.

Insurance changes can come with divorce

When people in Florida decide to divorce, they can encounter a range of financial questions and challenges. While many people are aware of the effects of property division and other major issues, fewer may think about the consequences of divorce for their insurance situation. Divorce can lead to several significant changes in insurance coverage, especially when it comes to life and health insurance. Most of these changes should be handled promptly after the dissolution of the marriage is finalized.

Marriages, divorces on the decline

In 2017, North Carolina had the 22nd highest divorce rate in the country with 3.1 divorces per 1,000 residents. The marriage rate was the 23rd highest with 6.8 marriages for every 1,000 residents. Among people 15 and older, 49 percent are married.

Filing taxes and claiming dependents after a divorce

Under normal circumstances, parents in North Carolina can claim dependent children on their taxes without any significant issues. However, this process can become complicated should two divorced parents attempt to claim the same child as a dependent. The ability to claim a child for this reason can lead to some valuable tax credits.

Tax returns can point to financial secrets

Financial issues can be some of the biggest problems that lead people in North Carolina to decide to divorce. In some cases, people may simply disagree about how to save and spend, but even other types of marital issues may have serious financial issues at the root. For example, infidelity may be primarily about trust and sexual exclusivity, but uncovering an affair can also involve a significant amount of spending, including on items like gifts, meals out or hotel rooms.

How to avoid common financial errors in a divorce

Knowing about common financial errors during a divorce may help some estranged North Carolina couples avoid making them. One common assumption is that a divorce must end up in court. However, many couples are able to reach an agreement through mediation or collaborative divorce instead of going to litigation, which may be more expensive.

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Hardin Law Firm PLLC

Hardin Law Firm PLLC
1314 Raeford Road, Suite D
Fayetteville, NC 28305

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