The Most Common Financial Issues to Confront in Divorce

Divorce does not just place a lot of strain on you emotionally and physically — it also takes a financial toll. You and your spouse must make a series of decisions that will have a significant impact on your financial situations, both present and future.

The following are just a few examples of the biggest financial issues that must be negotiated during a divorce:

• Property division: How are you going to split the property the two of you own? Any marital property (items acquired during the course of the marriage) will be up for division as part of the divorce — and not necessarily equally. This property includes cash, retirement accounts, brokerage accounts, real estate and any other assets with financial value. Have a list of priority items you wish to come away with, and to be sure you negotiate in good faith so you can keep the matter out of court.
• Debt division: Just as your marital property will be divided between the two of you, so will your marital debts. It is beneficial to try to pay off as many debts as you can before the two of you split, although this is not always going to be possible. Know that even if you do split the debts equally, you will still be legally responsible for debts your former spouse fails to pay if the debt is in both of your names.
• Taxes: You will need to discuss issues like who will get the tax exemption for dependents, who will claim head-of-household status and any other tax-related issues that arise.

To learn more about the financial impacts of divorce and the issues you will need to carefully consider, consult a dedicated Long Island family law lawyer with Bryan L. Salamone & Associates.