Affordable. Accessible. Experienced.

Financial considerations in a divorce

On Behalf of | Feb 24, 2021 | Family Law |

There are a number of financial issues that need to be addressed if you are getting a divorce in Kentucky. For example, you may need to make arrangements to get health care if you were previously covered through a spouse’s employer. Consulting with an attorney may help you assess all the areas of your finances that will be affected by the divorce.

Property division

One of the biggest financial issues in a divorce is dividing property and debts. Some people forget about the latter and do not realize that they will need to come up with a system for splitting up any jointly held debts. You should be aware that creditors will be much more concerned with whose name is on the debt than with whatever has been agreed upon in the divorce settlement. While it is not always possible to pay off all debts before a divorce is finalized, it might be a good idea to have the debts in the name of the person responsible for paying them off.

Budgeting

When determining how property will be divided, it is important to think about what your expenses will be like after the divorce. This can be challenging for anyone who has not played much of a part in managing finances during the marriage. Financial professionals might be able to help in creating a post-divorce budget.

Retirement accounts

Retirement accounts are another important element in many divorces. It is important to understand whether retirement assets will be taxed on withdrawal and whether a divorced spouse is eligible for pension payments or Social Security benefits.

It is generally a good idea to gather as much information as possible about your marital finances and each spouse’s individual finances if you are considering divorce. Meeting with a legal or financial professional may help you get a sense of what could happen financially, including whether you might be eligible to receive or required to pay spousal support.