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Debt, Taxes and Other Financial Issues in Divorce

On Behalf of | Sep 1, 2021 | Uncategorized

In New Jersey and elsewhere throughout the country, many people are struggling to restore financial stability in their lives after losing their jobs or encountering other money-related challenges in the past year. For some, such as those who have recently filed for divorce, financial issues are a top priority. While a spouse may want to achieve a settlement as swiftly as possible so that he or she can leave the past behind and move on in life, it is important to have a clear understanding of state laws and possible financial implications of proceedings before heading to court.

Splitting Debt is Part of Property Division Proceedings

Most people are aware that marital property is divided between a pair of spouses in a divorce. However, some do not know that any debt that was incurred during marriage is also subject to division. A concerned spouse will want to take a full inventory of all liabilities that the court will take into account as it makes decisions about marital property.

Parents Must Resolve Certain Tax Issues

For spouses with children, many child custody issues must be resolved before a fair settlement can be achieved. Divorce has certain tax implications that parents will want to discuss, such as which parent will assume the “head of household” status that enables him or her to claim a child as a dependent on tax returns. Issues regarding child support may also necessitate a tax-related discussion, such as whether or not paying support is deductible, etc.

Divorce At An Older Age May Spark Retirement Benefits Issues

Another financial topic that often comes up during divorce proceedings typically applies to spouses who have retirement programs in place. A spouse who has estimated that a certain amount of funds will be available when he or she retires may have to re-crunch numbers to work in property division proceedings where an ex is entitled to a portion of his or her retirement benefits. For retirement issues or any other finance-related topics in a divorce, a concerned spouse can request a meeting with an experienced New Jersey family law attorney to discuss his or her specific case.