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Overlooking important financial matters during divorce

A Florida couple entering into proceedings for divorce may find that asset division is one of the most challenging issues to resolve. It isn't uncommon for one partner in a marriage to be somewhat unfamiliar with financial issues affecting the couple, and this can create challenges in obtaining a fair settlement in a divorce. It is important to consider both assets and liabilities during the divorce process so that unexpected problems don't arise later.

Because shared debts can affect both partners, it is important to resolve these issues before a divorce is completed. If a joint account isn't closed, it may be possible for debt to be accrued later, and both individuals named might be responsible for that later debt. A thorough review of one's credit report may help in identifying areas that need to be resolved.

Another imminent issue for a spouse may be the need for cash. If this is the case, it may be important to seek assets that may be sold or otherwise liquidated easily. The tax implications for retirement assets can be important due to the fact that taxes will be due when funds are taken out of tax-deferred accounts. In thinking about tax implications, it's also wise to evaluate the couple's recent tax returns filed to pinpoint any missed assets. This may also provide valuable information about beneficial tax deductions. Because the issues can be complex, it may be helpful to work with both an experienced attorney and a financial adviser during this process.

A divorce attorney may meet to go over the financial issues while addressing additional concerns about the process. As priorities and needs are identified, the attorney may begin to formulate a proposed settlement while the client gathers credit reports and closes joint accounts so that potential problems can be identified.

Source: Forbes, "6 Money Matters Divorcing Spouses Often Overlook", Leslie Thompson, August 19, 2014

Source: Forbes, "6 Money Matters Divorcing Spouses Often Overlook", Leslie Thompson, August 19, 2014

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