While many people have high hopes that their marriage will stand the test of time as they prepare to walk down the aisle, sadly that's not always the case. There are some things that you should do before and during your marriage and if you two decide to split up to make sure that your sole assets are protected just for you.
For the past 70 years, spouses ordered to pay alimony could take a tax deduction for their spousal support payments. Recipient spouses didn't have to pay any taxes on the amount that they received. This all changed on Jan. 1 though. Alimony payers can no longer take tax reductions for their payments. Recipients have to now pay taxes on the support that they receive. Even still, there are ways that both parties can reduce their tax burdens.
A new study published by the American Academy of Matrimonial Lawyers (AAML) captures how divorce rates tend to increase the stronger the economy is. Couples are most apt to have more diversified assets when things are going well. Since couples are more apt to split up when they have more investments, they rely heavily on their divorce attorneys to negotiate settlements when dividing property among themselves.
Your spouse cheated on you, and it's time for you to get out of the marriage. Might the cheating extend to your finances, too?
Starting a business with your spouse may seem like a good idea, especially if you're looking to spend more time together or to control your income. It can become far less ideal, though, if things go sour in the relationship between the two of you. If you ultimately decide to divorce, then there are several options for how you can split up the family business.
An end to a marriage rarely comes as a surprise. Instead, most spouses generally see signs that their relationship is turning sour months (if not years) before they get served with divorce papers. It's when your marriage first shows signs of breaking down that it's time for you to start making financial plans.
Do you know when you ultimately decided to throw in the towel on your marriage? Did you take any definitive actions once you decided that you'd had enough? These are some questions that your attorney may ask of you in order to better hone in on a date of separation (DOS) in your divorce case.
Back in the late 1960s, researchers at the University of Washington (UW) reviewed the psychiatric and medical records of several thousand patients in hopes of being able to narrow in the types of life events that caused them the most stress. Similar studies have been conducted with similar results. An increased focus on financial concerns has emerged, though.
Couples who decide to divorce often concern themselves with how they're going to split up things like their homes, cars, jewelry and other valuable items. We seldom hear about which spouse is going to assume responsibility for the debts that they've amassed though. Perhaps it's rarely discussed because couples don't realize that just like their assets, any debts will have to be split up. They have to though.
One of the big questions divorcing couples face is whether to sell the family home. There is no right or wrong answer, as it depends on many circumstances. However, the conventional wisdom is often to sell and split the proceeds.