Taking care of your financial future in the middle of a divorce
The emotions of an Orange County, California divorce proceeding can be overwhelming. While there is a possibility that a dispute between the divorcing couple cannot be eliminated completely, a divorcing couple should take note that emotions may lead them to make incorrect decisions.
Divorce is not only about ending the marital relationship. There are responsibilities that come with the decision to divorce. Issues like the best interests of the children should clearly be at the top of the list. Maintaining the needs of the children of a divorced parent is different from when he or she was still married. The couple should come up with a list of the child’s possible needs and they should evaluate if lifestyle changes are necessary.
Because divorce has tax implications, the couple must decide who will assume the children as tax dependents as well as covering them under their health insurance. Additionally, the noncustodial parent must have a life and disability insurance policy that will benefit the children in the case of death or incapacity.
Marital property division is also equally important. In divorce, distributing the properties should be settled amicably between the couple, if at all possible. For example, one of the ex-spouses may want to keep the marital home; however, keeping the family home can be financially burdensome. It is natural for a custodial parent to want to have a fixed residence for their children, but he or she should be prepared to cover the expenses to keep the house. This may include utilities, taxes, rent and mortgage. If the marital home is to be sold, there are considerations about marketing costs and taxes. In addition to selling the house, the divorcing couple should set up an agreement, preferably in writing, about the sale.
Although it may seem difficult, putting emotions aside during divorce can be beneficial. Financial concerns are key contributing factors to why a marriage ends in divorce. Divorcing spouses from Orange County, California, should note that their financial future may be at stake if they do not get help and sound advice, especially from a legal professional.
Source: Wayne County Journal Banner, “Divorcing parents need long-range financial planning,” July 25, 2013