What steps can you take to minimize financial risks during your divorce? What do you need to know about financial aspects of your divorce and the basis for making sound decisions?
Some Kentucky couples going through a divorce might be familiar with the process because of prior marriages. However, most of those contemplating or going through a divorce are unfamiliar with important issues such as financial decisions which often carry long-term implications.
The first thing to you can do to minimize financial risks during your divorce is to develop strategies to manage the inevitable emotions which will arise throughout the process. Decisions which are taken in the midst of emotion are rarely good long-term decisions. Time is an important asset that should be used carefully to ensure that the decisions and agreements made are in one’s best interest.
Consulting a financial adviser may be one of the most important preparatory steps to minimize financial risks during your divorce. In some cases allowing an independent financial advisor with a comprehensive view of your assets, liabilities and future needs pays strong dividends. It may also be prudent to enlist the help of an investigator to ensure that there aren’t any hidden assets that should be included in marital property division.
Smart tax decisions should be made before a divorce settlement is accepted. If significant taxes will be owed on an asset, that tax basis should be figured into the value of the asset. The source of funds for a settlement should be considered as well since tapping some funds could increase one’s annual income for that year and erase potential deductions. It is often wise to avoid using retirement resources to settle a divorce because of such issues.
In other cases, tapping into retirement resources may be necessary to protect the ownership of a business or professional practice. Each set of circumstances is unique.
One of the most important steps to minimize financial risks during your divorce is the selection of an experienced divorce and family law attorney. We provide sound counsel to help guide you through the ups and downs of the process while protecting your own goals and objectives. Our attorneys can recommend a financial adviser and help you to manage important actions such as closing joint accounts and evaluating credit reports.
