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Financial issues to consider when getting a divorce

| Aug 16, 2018 | Divorce, Firm News |

When a couple in Nebraska decides to divorce, there are many different financial issues to consider. For instance, if a marital home has to be sold, there needs to be a plan for splitting the proceeds from the sale. It may also be necessary to determine who will pay the balance on the mortgage if the property sells for less than it is worth.

A couple who incurred debt together while married is generally responsible for paying off those debts after they end their marriage. A divorce decree does not trump or otherwise change the terms of a contract between a debtor and creditor. If a former spouse was named as an authorized user on a credit card, it is generally a good idea to have that privilege revoked.

After a divorce, an ex may find themselves paying a higher tax rate than while married. Ideally, an individual will obtain copies of tax returns and other documents prior to starting the divorce process. Furthermore, it is often wise to seek the counsel of a financial planner. This person can analyze a person’s income and expenses before and after the divorce to help them adjust to their new economic reality as a single person.

Ideally, property division in a divorce will be conducted in a way that allows both parties to obtain an equitable share of marital assets. This may mean that an individual who has less earning power obtains a larger share of a 401(k). It may also mean that a higher earning spouse pays more in alimony each month in exchange for the right to keep a vacation home. An attorney could help a client obtain a favorable settlement based on the facts of their divorce case.