Virginia couples who are contemplating divorce may be able to relieve some of the stress associated with worrying about their financial future. Instead of focusing on the unknown, it is better to be realistic and focus on what is currently known. The four categories the couples can focus on include assets, income, liabilities and expenses.
The assets the couple should look at include bank accounts, cash, certificates of deposit, mutual funds, stocks, bonds and real estate investment trusts. The individual who does not work or who makes less money will usually need to use these assets to cover their living expenses. It is good to be aware of the fact that assets have different tax consequences. For example, the wife may keep a money market account that is valued at $100,000. The husband may keep retirement assets that are valued the same. The wife will not have to pay taxes on her assets while the husband may have to pay a tax rate of up to 25%.
Liabilities and debts should be closely considered during the divorce process. Something that seems like an asset may actually fall into the liability category, like the marital home, vacation properties, and commercial properties. The couple going through the divorce will need to determine if these properties will be sold and who will be responsible for paying expenses connected to them. The debts or proceeds will need to be divided, and credit cards will need to be discussed.
There are many financial issues that come up during the divorce process. An individual who is contemplating a divorce may wish to speak with a family law attorney to get advice on asset valuation, shared accounts, property division laws and other practical issues that will arise during the divorce process.
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