Debts in a divorce and the procedure to handle it can differ from place to place depending upon the legal system there. Massachusetts has its own laws when it comes to divorce. Residents of Massachusetts have to follow the rules and regulations.
If you want to protect your assets during the divorce, you need to have a financial plan. It can also prepare you for the future. Asset distribution, financial support to the spouse, any tax implications, etc, need to be taken into consideration during the divorce.
Divorce can occur for multiple reasons, and they might not be the same for every couple. There can be emotional issues or financial issues leading to problems in the marriage. If you are considering getting a divorce, you need to have a clear idea of how the division of assets will take place, and the same goes for liabilities.
It can be overwhelming to deal with everything on your own, and hiring a lawyer can help you reduce some of the burden. Law firms like Turco Legal offer many skilled lawyer services in the area.
What are some financial considerations during a divorce?
Having financial considerations in mind can help you establish clarity in life; here are some of them:
- Only One spouse is the earner in the family:
There are spousal maintenance payments that need to be arranged when only one of the spouses is earning. Even in cases where the other spouse is making a lot less money, they have to provide alimony.
Furthermore, if there are children in the family who might be in the custody of one of the spouses, the other spouse, if earning, will have to provide the child support.
- Dividing primary residence:
If you are willing to live in the same house, you will have to get it financed in your name. However, you will have to let your spouse have a larger share in some other asset. This is to have an equitable distribution.
It would help if you kept in mind that the home you are living in will also need maintenance, which can be expensive. You can keep track of the items that were paid in jointly owned assets.
- Division in retirement plans:
Whatever savings you might have in your retirement will be equally distributed between the spouses, but that may not be the case in every scenario. All the funds that were saved by the individual will be considered separate. Equal distribution is usually crucial for those who are getting divorced at the age of 50 or above.
- Benefits of social security:
When you reach your retirement age, you can claim spousal social security benefits. It is going to depend on how much your ex was earning; you have to be married for ten years in order for this to be valid. Your divorce should have taken place for two or more years now, and you need to be still unmarried in order for this to be applicable.
- Tax-related issues and implications:
Once the couple is divorced, they can no longer make the claim of tax filing jointly. It becomes effective from the year when the divorce took place. You will have to file as a single person, or if you are the household, then that can work, too.
Tax benefits can be there in both cases, depending on how you are doing financially. Mortgage and tax deductions on property need to be handled, too. Once assets are liquidated, they are also going to be subjected to taxes, and after-tax value needs to be kept in mind, too.
How can a divorce lawyer help?
Divorce lawyers can help you at every step throughout the process. They can help you in getting the benefits and avoiding any liabilities as well. They will ensure that your rights are protected under laws and no injustice is done to you.
