If you are considering a divorce, you are likely going through a slew of emotions. Money might be the last thing you want to think about, but it is one of the most significant aspects. Here are some financial elements a divorce attorney Tampa can help you navigate.
There are often tax implications regarding money and divorce. For example, if income is transferred during a divorce, it is not taxable. The person receiving the income gets it outright, and the person providing it doesn’t get to write off the expense. Conversely, alimony payments are tax-deductible. In this case, the person paying alimony gets the tax break, but the person receiving will have to report the income as taxable.
You’ll want to gather all financial documents before filing for divorce. Proceed with caution, taking the time to check everything off of the list so that there are no loose ends. Your list should include things like documentation of assets, loan applications, and account statements. Keep track of your spouse’s financial situation so that you are clear about what you’re entitled to. Likewise, keep track of your own finances. During the discovery process, you don’t want to be frantically gathering credit card statements. Divorce is stressful enough and keeping a tight reign on your financial landscape will help you avoid additional stress.
Division of assets can be tricky if there is not a set numerical value attached. For instance, if you are selling a family home, it’s easy to divide the profits from the sale. However, if one spouse is staying in the house, you’ll have to get the home appraised to figure out what the equity is. Retirement accounts are also difficult to assess, as there are often early withdrawal penalties that lessen the overall value.
Divorce is a complicated process, and it is not wise to go it alone. If you gather a team of professionals to help see you through the details, you can ensure your financial stability moving forward.