What Should I Know About Division of Assets?
No matter how long you’ve been married, Kentucky couples and those elsewhere, are in for some trying times when a marriage ends. The situation is stressful for all involved, including the one seeking a divorce. Emotions run high on both sides and change frequently, from anger to denial, heartbreak, and confusion.
CNN advises that, when it comes to dividing marital assets, both parties take their time and consider the outcome from all angles, so you do not wind up regretting decisions made in haste. Here are the top three mistakes divorcing couples make.
Making Decisions out Of Guilt
In most divorces, there are bound to be some guilty feelings, especially if adultery is the reason for the breakup. However, those feelings should not enter into a division of assets or any other decision. Try to think of divorce as a business arrangement or dissolution. Get advice from those you trust or an expert who is not involved emotionally and they are likely to tell you not to over-compensate your soon-to-be ex-spouse and short-change yourself in the process.
Not Weighing Tax Consequences
If you have high-value assets, you may have to pay taxes on the distribution of certain properties, or you might be required to pay more income tax than you expected when alimony is factored in. Alimony is counted as income, and it’s taxable as such. While the paying spouse gets to deduct it from his or her income, the recipient must add it, so be aware of how the amount of an alimony payment is going to affect your income taxes. If you receive alimony as a personal check, realize that it typically is not taxed, so you will need to set aside a portion for your annual tax payment.
Agreeing for The Wrong Reasons
Because divorce itself it is a painful, frustrating process, you may be inclined to just “do it and get it over with” when working out who gets what. As hard as it is, this is not a good decision. You may think it worth all you have coming just to get the process done. But think twice before agreeing to low-ball alimony and assets. You may be stuck with your decision for a long time, so make sure it is fair to you.
This article provides important information on divorce. It should not be considered legal advice.