Top 5 tips for divorce and personal finances

Top 5 tips for divorce and personal finances

If you are facing a recent divorce this article is a must-read. Here you will find out plenty of information on personal finances and divorce-related. Read on to discover all the details!

If you are facing a recent divorce this article is a must-read. Here you will find out plenty of information on personal finances and divorce-related. Read on to discover all the details!

When a marriage ends, women often see a larger drop in income than men. Consider these key points as you make decisions about splitting your finances as well as your lives.

When a marriage ends, women often see a larger drop in income than men.

The decision to divorce has become increasingly common for couples over 50. In fact, people in this age group are now twice as likely to part ways as they were in 1990, according to research from the Center for Family & Demographic Research at Bowling Green State University.

First of all, the laws that govern how property will be divided in a divorce vary from state to state, so you’ll be guided to some extent by local laws and customary practices. For instance, there are nine states that are so-called community property states, in which property acquired during the marriage is generally divided 50/50.

Other states tend to call for “equitable” division of joint assets, which just means that they’re split in a way that stresses fairness, rather than equality. On top of that, some states are “no fault” states, in which the circumstances of the divorce play no role in the division of assets, while other states take such factors into consideration.

First of all, the laws that govern how property will be divided in a divorce vary from state to state

Your house may be the place where you raised your children and now call home, but it’s also an asset. Try to put your emotions aside if you can. If you do decide to put your home on the market, have it appraised right away so you can agree on a sales price. If the divorce is amicable, you’ll likely need to have it done once. If there’s contention, each partner might want to get separate appraisals, which could then be averaged.

Your retirement assets are also an important thing to consider. It’s always a good idea to include your accountant when you speak with your divorce lawyer about handling these assets. Transferring one person’s IRA, or a portion of it, to another requires special care to make sure there aren’t tax implications.

Also bear in mind that any private-sector retirement plan that’s covered by the Employee Retirement Income Security Act (ERISA), such as a 401(k) or a pension, will require a court-approved division.

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