This is part three of a three part series on things steer clear of when getting a divorce. The other two articles covered more preparation tips than anything else. The third part of this series will attempt to discuss just how vital it is to pay especially close attention to anything and everything with taxes. The rest of this article will attempt to jump in and explain this.
There are two things in life that are certain: death and taxes. It is for this reason that you need to not pretend like your taxes are invisible. You need to ask yourself the questions prior two getting a divorce.
• Are you currently in debt?
• Do you stole money on taxes from a previous year
o If you do will taxes still, how much money is this?
• Does your spouse know about your tax situation?
• Do you file the single or joint tax return?
o In the year that your divorce was finalized will you file separate returns or a joint?
• Are their children under the age of 18 in the household?
o Have you and your spouse mutually agreed on who gets custody of their children which in turn means claiming dependents on the return?
• Is there alimony involved?
o If this is the case, how will this change how you currently file taxes?
• Is their child support being paid out?
o Once again, will money being doled out result in a different tax filing?
• Which of the parties will get taxed when the house is sold? This is known as the capital gains tax
• Are you your spouse or both of you in line to receive a childcare credit?
The cardinal sin in a divorce proceeding is to concede your wants and needs in exchange for your spouse’s feelings. By giving in to their request, you may be doing yourself some long term damage in the long run. Giving your soon to be ex spouse what they want is not a way to salvage the marriage. Instead, it is just confusing you from a decision that you have decided was the rational one. By allowing your emotions to come into play, a divorce could then turn into a separation. It is no surprise that a large number of people fall prey to these feelings of remorse and try to work things out with their spouse.
If you have made up your mind, go with your brain and your rationalized thoughts. Reconciliation Is certainly an option but more times than not a divorce ends up happening not that much further down the road.
This is the last part of a three part series on things to steer clear of in a divorce proceeding. Armed with this information you can seek out better help through your attorney and/or accountant.
Things to Steer Clear of When Getting a Divorce: Part 1
Things to Steer Clear of When Getting a Divorce: Part 2
Things to Steer Clear of When Getting a Divorce: Part 3
This is part two in a three part series on things to steer clear of when getting a divorce. The previous article highlighted the importance of making decisions on your own without worrying too much about the opinions of your lawyer, accountant, family, and friends. This is not to say their opinions are too valuable. It is more of a point that you should have the final say in your divorce.
The second part of this series on things to steer clear of will focus more on the division of assets and finances.
During a divorce proceeding during a divorce, the first thing lawyers will insist on as a discovery process. During this stage, lawyers from either your party, your spouse’s party, or both of you have agreed to share documents and any relevant information that could aid the case of either or both parties. In the discovery process it is not uncommon for documents such as statements of finances or years of nine years of tax returns being brought into the open. In the discovery process, all of the attorneys can interview both parties under oath. What this means is that for every minute that turns into an hour that your lawyer is working, you’ll have to continue to pay their wages.
Do yourself and your spouse in favor: be cooperative during the divorce process by willingly sharing information between both attorneys. Trust us, this is much cheaper then having a lawyer spending their time digging through documents and reviewing them.
Creating an inventory is a must before splitting up the assets. You want to know what items you have before splitting them down the middle with your spouse. In Milwaukee (and all of Wisconsin for that matter) both husband and wife will get an almost 50/50 split of everything. Below is a list of what is the bare minimum to have in your inventory. In regard to these items, you should also try your best to provide: brief summary of the item(s), what date the item(s) was obtained, how much money was spent initially on item(s), and what the item is presently valued at. Now on to the list:
• Property or real estate that you own or jointly own with spouse
• Cars and automobiles leased or owned
• Items retaining substantial sentimental or financial value
• Checking, saving, or any accounts where cash is stored and interest may accrue
• 401k or any other retirement fund or account
• Stocks or mutual funds
• If a business is owned by you, spouse, or jointly that should be inventoried
• Any taxes possibly outstanding or refunds that have not arrived
• Loans of the student, credit card, mortgage, or other variety
This is the end of part two of a three part series on things to steer clear of when getting a divorce. Below are links to the other articles in the series.
Things to Steer Clear of When Getting a Divorce: Part 1
Things to Steer Clear of When Getting a Divorce: Part 2
Things to Steer Clear of When Getting a Divorce: Part 3
