| |
| |
|
Divorce Information |
|
|
|
Tax & Financial Impacts of Divorce: 10 Mistakes to Avoid
Divorce is something no one hopes will happen to them when they get married. Unfortunately, almost half of all marriages end in divorce. Since few people have pre-nuptial agreements, most divorces involve often bitter tangles over children, money, and assets. When it comes to the tax and financial implications of divorce, often your divorce attorney is not the only one you should rely on for advice. I have found ten very common mistakes that people make in the divorce process. A tax or financial pro can help you avoid them. 1. Don't let emotions guide you in determining the divorce settlement. Divorce is about a lot of things, but is caused mainly by emotional issues or financial problems in the marriage. You may love or hate your soon-to-be ex, but you cannot rely on your "gut" feelings that they will do right by you or the children. You must make the settlement using reason and planning for the unexpected. He or she may want to pay a large alimony and a small amount in child support by telling you they want to see you are "taken care of." That may result in less tax for them, a lot more taxes for you and destitute children should you die before they reach 18. Financial planning is critical. 2. Get a good family law attorney, but don't forget to hire a financial professional to assist in evaluating assets and financial strategies. It may cost extra fees, but it will result in a far better settlement for you in most cases. A Certified Public Accountant (CPA), Certified Financial Planner (CFP), or an Enrolled Agent (EA) can be of invaluable help. What is the house really worth? If a business is involved, what are the consequences of its disposition or the true value of it in the divorce settlement? Your spouse might tell you their business is losing money or has no assets; you need to know the truth! 3. Getting the house in the divorce is not always a good deal. Women often want the house in the divorce because they are raising a family in it or have decorated it and are emotionally attached to the property. If it has a mortgage attached to it, think long and hard about the house. It might be better to sell it and split the equity. If you aren't working and are raising kids, do you really want a big mortgage payment? 4. Failing to fight for the most child support you can get! Large alimony and low child support payments are generally not a good deal to the spouse getting the payments. Alimony is tax deductible to the party paying but taxable to the party who receives it. A large payment is a large tax deduction for one party and a big tax burden to the person getting it. Child support is tax free to the recipient and not deductible to the payer. Also, alimony may terminate upon marriage or death, but Child Support continues until the child reaches 18. 5. Failure to specify who can claim the kids on the tax return. The divorce should specify who will be entitled to claim the children. Also, Form 8332 Release of Claim may need to be filed with IRS in some circumstances. 6. Lack of planning with regard to life insurance. Life insurance should be reviewed in the event of divorce. You may want to take your ex off of your policy as beneficiary, but do you really want to make your children beneficiaries? Unless they are over 18, this can be a big mistake as the funds may go to a trustee until the kids reach majority. Consult with your attorney on how to style your life insurance to best provide for the kids. If you are the person getting alimony or child support, it is a very good idea to carry a life insurance policy on your ex in the event of death. Otherwise the money stops coming and you may end up homeless. 7. No income modeling done in the calculation of alimony. Your spouse may be a corporate executive and have great future earning potential. He or she may have stock options. An income model should be made to determine the potential they have and how it can affect your claim in the divorce. 8. Failure to secure a Qualified Domestic Relations Order (Quadro) in the event of a 401K or other tax impacted investment that is divided in the divorce. If you don't do the right thing, huge tax penalties can be imposed on taking money out of IRAs, 401Ks, or Annuities. A good family law attorney can help with this but your Uncle Joe who handles bad check defense may not be the guy you want to do your divorce. He or she may not be familiar with a Quadro. 9. Failure to have assets professionally appraised. If you have rent houses, oil and gas investments, etc. Get a professional valuation or you may be cheated in the divorce settlement. The spouse who handles these investments may not be honest with you on the values. Just because he or she loves the kids or was married to you for thirty years does not mean you can trust them. 10. Lack of faith in yourself and your future. Divorce is bad but it is not the end of the world! You may have some tough times but your life will go on and it may be a blessed life. You don't know what tomorrow brings. It may bring love and happiness. You must have faith in yourself so that you can take care of the kids and be successful in whatever you choose to do. Money is not everything, but if you don't have faith in God and yourself, you won't be financially successful. Well that is my list and it is my prayer that it has helped you in some way. Be strong and be forceful. Don't get walked on! J.R. Coleman, E.A., A.T.A. James Robert Coleman, E.A., A.T.A.
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
Things To Consider When Making A Decision About Divorce When making a divorce decision, there are quite a few things that you should consider. Too often people find themselves unable to clearly identify what they need to think about when making a divorce decision which leads to further indecision and frustration. The Legal Side of Divorce While divorce can be an emotionally draining experience, even in the best of situations, it can also be a complicated legal matter that affects both parties equally. No matter how long your marriage has lasted or how few belongings you share together, it is also best to involve an attorney in your divorce proceedings. Women And Divorce: How Women Should Protect Themselves Financially Regarding Divorce Women who believe a divorce is a possibility or who think that their husband will be asking about getting a divorce at some point should put their emotions aside and plan "just in case" their intuition is correct that a divorce may be coming in the near future. If women who believe that the "divorce discussion" may be lurking, they should make it a point to look for solid signs that their husband will indeed ask for a divorce. Surviving Life After Divorce After divorce, the most important thing you can do is to move forward sensibly. Here are ten steps to help you on your way back to a fulfilling life. Cheating Husbands - Meeting Needs? Husbands cheat on their wives for many reasons. They could be bored with their lifestyle and feel that they need to do something exciting or they could be having a midlife crisis. How To Identify What The Question Should I Get a Divorce? Means To You Deciding about whether you should get a divorce or not is an agonizing experience to go through. If you are asking yourself "should I get a divorce?", you've been thinking about your relationship's state for a while or an isolated incident (an example is an extramarital affair) that occurred was so terrible, that you want to just chuck it all and start over with a new life!If you have been asking yourself "should I get a divorce?" for any length of time, you should figure out what is making you feel that way if you haven't already. Divorce Online Sevice - Why Should We Lose Money And Time Applying For Divorce? Attempts to use the worldwide Web as an effective means of struggle against bureaucracy are undertaken constantly and sometimes successfully. Today it is possible to fill in a tax declaration, apply for bankruptcy or to receive a legal consultation. Get Over A Divorce and Prepare for Divorce Recovery! It can be difficult to get over a divorce and cope with a divorce when you are in pain. A ton of emotions and indecisiveness consumes you. The Job of a Divorce Attorney Marriage is a very solemn and serious chapter on any person's life. However, due to personal reasons, a couple may decide to call everything off and file a divorce. Coping With Divorce Anger Successfully releasing your anger will help you begin healing after your divorce. Right now you may feel a great deal of rage at your ex-husband. Reasons You Arent Starting the Decision Making Process About Whether To Get a Divorce Or... Stay MarriedAlong with any tough decision comes reluctance, especially when that decision involves an actual process and might potentially involve emotional pain or anguish. Deciding whether or not to get a divorce or stay married can be a frightening time for most people, even if they know deep inside themselves that they have to actually make a decision, one way or another. How to Select a Divorce Lawyer Selecting a divorce lawyer to handle your family law case is a very important decision. The following are a few important criteria to help in finding the right divorce lawyer. Healing Dysfunctional Families In a recent article entitled "Some Evidence On How We Are Spiritually Connected" I reported on a case study that revealed how individuals who share common traumatic memories can help each other release the trauma at a distance employing a new tool called the Mind Resonance Process(TM). In this article I will elaborate some of the potential applications of such a result as well as its far reaching implications. Divorce: How To Survive A Divorce And Move On With Your Life One out of every two marriages in America is failing.American families are crumbling and vanishing. What Are You Waiting For? So, you've decided that you're no longer "a couple", but for whatever reason, you and your spouse have decided to stay together "for the sake of the children".Isn't that what the children need? Don't they need the strength of a two parent household in this mad society that we live in? Don't they need the emotional assurance that Mom AND Dad are together? Don't they? Or do they?When my ex and I decided to divorce, we decided that he should probably live in the house with the children and I, for their sakes. Four Tips to Save You Money in a Divorce Case 1. Have an Clear Written Fee AgreementMost experienced and effective divorce attorneys charge by the hour and require an advance retainer (or deposit) that is paid at the beginning of the case. 3 Major Divorce Parenting Mistakes And Learn How To Avoid Them What 3 major divorce parenting mistakes that surely lead to unhappy, unhealthy and unsuccessful children? Parents know these for your children seek.1. How Women Should Protect Themselves Financially Regarding Divorce Women who believe a divorce is a possibility or who think that their husband will be asking about getting a divorce at some point should put their emotions aside and plan "just in case" their intuition is correct that a divorce may be coming in the near future. If women who believe that the "divorce discussion" may be lurking, they should make it a point to look for solid signs that their husband will indeed ask for a divorce. Surviving Divorce: What To Think About To Ensure Surviving Divorce Surviving divorce can be a valid fear if you're contemplating getting a divorce. In order to ensure surviving divorce, you should first understand that your divorce decision shouldn't be taken lightly. Should I Get Divorced? Or Not? No one besides you can determine whether or not a divorce is right for you! But, there are some general questions which pretty much apply to everybody. Thinking about the following issues may help you answer this question for yourself!What specifically is making you think of divorce?Physical AbuseIf your spouse is violent to you and/or your kids, this is a safety issue.
|
| home | site map buy zune zune movies comprar zune |
| © 2006 |
