Three things to know about divorce and your finances

On Behalf of | May 21, 2020 | Family Law |

It is normal to worry about money. Financial worries are one of the biggest issues for individuals going through divorce. Few people have a strong grasp of property division or the financial steps you will need to take during divorce. At the moment, you may not know if you can support yourself, let alone your children.

Now is the time to protect yourself financially and to go above and beyond to make wise decisions. Let’s pull back the curtain on some considerations you should consider in your divorce.

Property division is not a 50/50 split

North Carolina is what is known as an “equitable division” state. This means that instead of splitting your assets directly in half, the courts look for an agreement that is fair. For instance, one person may retain their home, but receive far less in savings and how you choose to split a family business will impact the rest of your division.

When you prepare to work through your property division agreement, think about your priorities, what you are willing to sacrifice in exchange for your most valued items and how you can protect your long-term finances.

Your retirement savings may change

Many people are unaware that retirement savings and pensions can be subject to division, including military benefits. In order to keep your retirement savings and investments in-tact, you may need to offer something else of value in exchange. Consult with your attorney on how to maintain your savings.

How you divide your property will impact your taxes

Your tax liability for the upcoming year may still include your spouse and filing jointly may be in your best interest. Even moving forward, years after separation, your alimony settlement and child support payments can be included in your taxes.

All of these factors are worth consideration. As you go through your divorce, remember to think long-term and to freely ask questions of your attorney.