Splitting finances can be difficult in divorces

On behalf of Stange Law Firm, PC posted in Family Law on Friday, August 17, 2018.

Finances are a big concern for Missouri couples going through a divorce. These spouses may wonder what they’ll have left after the property division process and if one income will be enough to support the lifestyle to which they are accustomed as a couple.

When it comes to financial issues, a divorcing person should focus on four areas: assets, liabilities, income and expenses. Assets can include bank accounts, stocks/bonds and retirement accounts. Tax implications of any asset being divided should also be taken into account. What looks fair on paper to both spouses may be unfavorable to one when it comes to paying taxes.

Division of real estate can be difficult, especially if the couple owns a lot of property, such as a primary home, vacation home, and rental or commercial property. Deciding who gets the family home may be difficult because of sentimental attachments. If the decision is to sell, then one spouse may have to pay the expenses until a buyer is found. Couples may not realize that if one spouse keeps the house and agrees to pay the mortgage, the other spouse remains responsible for paying off the home loan unless the first spouse takes out a new mortgage in their name only.

Family law matters, such as finances, can be complicated and difficult to understand for those who are easily intimidated. If the divorcing couple signed a prenuptial agreement, however, the process may be easier. Otherwise, a divorcing spouse may want to contact a family law attorney for assistance with the divorce process. A lawyer could explain what happens to joint finances and help a client obtain a fair division of assets.

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