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How to Protect Your Financial Security During Your Divorce

Posted on in Divorce

Los Gatos divorce attorney financial issuesThousands of people get divorced each year, and couples choose to split for a wide variety of reasons. However, financial issues are one common cause of divorce. In some cases, a couple may disagree about how expenses will be shared, what sorts of purchases are appropriate, or what should be done about debt. If they cannot come to terms on these issues, ending the marriage is often the best choice. Unfortunately, even after divorce, financial issues related to the marriage can continue to have an effect. To ensure that you will be able to begin your new life on secure financial footing, you should take a few steps to protect yourself financially.

What You Can Do 

The choices made during the divorce process can have a major impact on your life going forward. Here are a few steps to take and missteps you should avoid in order to maintain financial security:

  • Understand the Tax Implications: Your divorce will change your financial situation in a number of ways, and one of the most notable alterations is how you are taxed. If you are ordered to pay spousal support or child support, you will not be able to deduct these payments from your taxable income. If you receive these types of payments, you will not be required to pay income taxes on them. You should also be sure your divorce decree specifies whether you or your ex-spouse will be able to claim tax deductions or credits for any children you share, who will be responsible for paying property tax on your marital home, and whether you will need to address any outstanding tax payments that are due.

  • Do Not Spend Recklessly: While the divorce process may seem like a great time to begin exercising your freedom, it is wise to avoid reckless spending. With the changes in your financial situation, you will need to develop a new budget that accounts for your ongoing needs. You should avoid making any major purchases, such as a new car or an expensive home, until the dust has settled and you have a clearer picture of your income and expenses. 

  • Know What Assets to Fight For: Your divorce can be emotionally challenging, and disputes over who will keep which marital property can be especially contentious. However, it is best to try to take a step back and make logical decisions about what you are fighting for. You should be sure to fully understand the implications involved in the decisions made. For instance, while you may want to continue living in your marital home, you may be unable to make mortgage payments and pay property taxes when earning a single income. Considering these issues dispassionately can help you make choices that will allow you to meet your financial needs going forward. 

Contact a Los Gatos, CA Property Division Attorney 

Divorce can be complicated, and you need the help of an experienced attorney to guide you through the process. Attorney Benita Ventresca has years of experience representing clients in divorce cases. With skills in mediation and litigation, Attorney Ventresca is confident in her ability to help you achieve success in your divorce. To schedule a complimentary initial consultation with a skilled Los Gatos divorce lawyer, call us today at 408-395-8822.

Source: 

https://www.forbes.com/sites/davidrae/2018/10/25/divorce-financial-mistakes/#2685e5c77eda

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