- Know which assets are considered marital property and which ones are separate.
- Agree on how to divide your assets with your spouse or through mediation (if necessary).
- Consider child custody, visitation rights, and potential tax implications when filing for divorce.
- Alimony payments can be taxable income for the recipient and deductible from income for the payer.
- Consult a lawyer if needed to ensure both parties have a fair outcome.
While divorce is a complex and emotional process, certain legal aspects must be considered and addressed to ensure that both parties have a fair outcome. Here are four key things to consider during divorce proceedings.
During a divorce, spouses must divide their assets. This process is known as property division and can be complicated, especially when high-value assets are at stake. To ensure that dividing assets is fair and equitable, it’s important to understand the laws governing property division in your state.
What Is Considered Marital Property?
The first step in understanding property division is knowing which assets are considered marital property and separate property. Generally speaking, any asset acquired during the marriage is considered marital property and must be divided between the spouses during a divorce.
On the other hand, any asset acquired before the marriage or via inheritance or gift is considered separate property and does not have to be divided between the spouses during a divorce. It’s important to note that some states may have different rules regarding which assets are considered marital property.
How Is Property Divided?
Once you determine which assets are considered marital property, you must decide how they will be divided between the two spouses. In most cases, this will involve negotiating an agreement with your spouse or through mediation (if necessary). If you cannot agree on how to divide your assets, then a judge will step in and decide for you based on state law.
Child Custody & Visitation Rights
Child custody must be addressed during divorce proceedings if you have children with your former spouse. In this case, a child support lawyer can help you, and your former spouse establishes a custody agreement in your child’s best interests. This can include physical custody (where the child lives) and legal custody (which grants decision-making power).
Additionally, visitation rights should be discussed so parents can spend time with their children after the divorce. Both parties must agree on these issues before filing for divorce so there are no surprises later.
Child Support Payments
Child support payments refer to regular fees made by one parent to another for their minor children’s care and well-being costs, such as food, clothing, and educational expenses. At the same time, they are under 18 years old (or longer if applicable).
The amount of child support payments depends on numerous factors, such as each parent’s income level, how many children are between them, etc. Still, again it’s essential to know what applies in your particular state to determine what kind of payment structure might work best for everyone involved before filing for divorce.
Divorcing couples must also consider tax implications when dividing up assets or determining spousal/child support payments from one party to another during a divorce settlement agreement.
Filing Status Change
When you file your taxes, one of the first things you must decide is your filing status. As a married couple, you usually file as “married filing jointly” or “married filing separately.” However, if you are divorced or legally separated during the tax year, the IRS considers you unmarried and will require you to file as “single” or “head of household”.
If your divorce is not finalized by December 31st, the IRS will still consider you unmarried for that year—even if all other aspects of the divorce have been settled—so it is essential to keep this in mind when filing taxes.
If alimony payments are part of your divorce settlement, it is important to note how they will affect your taxes. Generally speaking, alimony payments are taxable income for the recipient and deductible from income for the payer.
Therefore, if you make alimony payments, remember that they will lower your taxable income (which can be beneficial come tax time). On the other hand, if you receive alimony payments, remember that they will increase your taxable income (which may push you into a higher tax bracket).
Divorce can be an emotionally draining experience, but it’s important not to lose sight of all its legal aspects. Understanding all four points mentioned above can make navigating through this difficult period much more accessible while ensuring fairness for both parties involved at every step!
With careful consideration given to each point listed above during negotiations—and consulting with an experienced attorney if needed—the entire process will hopefully go more smoothly than expected despite the inherent challenges associated with ending a marriage relationship permanently.