Welcome to the Divorce Magazine Blog! Here, you'll find posts by experts, as well as posts by individuals who are facing the challenges of separation and divorce. We hope you find them interesting and informative – and a source of support and advice as you make your way through divorce into a new life. For information about becoming a blogger for this website, or to find out about our easy video blogging feature, click here.
The use of a trust in equitable distribution and tax planning in divorce situations can be complicated and not right in every situation. However, using a trust for equitable distribution and support payments could add an extra layer of protection for your client.
The process of getting divorce is a combination of legal, emotional, family, and financial issues all rolled into one. Many times the financial side of the equation is overlooked, or assumed to be fully analyzed in the legal process. But far too often the financial side is under-analyzed, under-appreciated, and not “future-proofed.” That’s where I, the financial advisor, come in.
Division of assets and debts may sound easy, but it is often not easy at all. These are the tax effects of property division and debt division in divorces and dissolutions.
While a divorce can greatly affect you emotionally, it can also impact you financially. As you go through the divorce process, remember that the decisions you make now will have long-term effects on your future.
Usually, transfers of appreciated property between parties result in gain recognition. However, by utilizing Section 1041 of the Internal Revenue Code and a properly drafted property settlement agreement, divorcing spouses can transfer property between themselves without triggering a gain.
The house can often be the single largest asset in a marital estate. Decisions you make in this regard may determine your future financial stability. Take the emotions out of it.
To keep divorce from destroying you financially, you should prepare in advance to protect yourself. One important step is to ensure that you have good credit before you get divorced, which can be invaluable both as you pay for the expenses associated with divorce and when you’re moving on with your new life.
When divorce is on the horizon, it becomes necessary to compile a list of marital property (assets and debts) and supporting documentation as early in the process as possible. Tax returns are a good place to start when trying to verify sources of income, and to locate the existence of various assets owned.