Divorce can be a financially challenging experience, even if you're prepared for the change in your financial situation.
Apart from the expected expenses, there are some financial risks that you may not anticipate, such as spousal debt, taxes, dividing digital assets, and changing beneficiary information.
In many states, debts incurred during marriage are considered community property and must be divided equally between spouses. However, you can negotiate with your spouse to take on the debt or request higher alimony payments to cover the debt you're forced to take on.
The change in your marital status also affects your tax burden, which can lead to unexpected tax bills. Digital accounts, including subscriptions and services that you shared with your spouse, should be divided or changed to avoid financial consequences.
Finally, changing your beneficiary information is crucial to ensure that your ex-spouse doesn't benefit financially from any accounts that remain in your name. To mitigate these lesser-known financial risks, it's crucial to work with a qualified divorce attorney who can provide personalized guidance and help you navigate the complexities of the divorce process.
Schedule a consultation today with T. Verner Smith and let's begin discussing the financial aspects of divorce in addition to the more common considerations. Proper legal advice can help position you in the best way possible. Call us today at (731) 423-1888.
Living in a litigious society can be nerve-racking, especially if you're at risk of losing everything you've worked hard for due to a lawsuit or creditor claims. Sadly, even one mistake can put your long-term financial future at stake. This is why asset protection is so crucial.
When your insurance policy doesn't cover claims made against you, your assets become vulnerable in a lawsuit. A judgment can be made against you, and creditors can come after your assets to satisfy the claim. While some assets are off-limits to judgment holders, almost everything else is fair game. This means that you could lose everything with just a few strokes of the pen.
If you're in a profession that's more prone to lawsuits, such as a professional practice or starting a business, you may be at an even higher risk of losing your assets. Malpractice insurance may only cover so much, and if your business doesn't perform as you hoped and you have to guarantee your loans, you're also at risk.
However, asset protection can help mitigate these risks. By taking proactive measures, you can create a protective barrier around most of your assets and keep them out of the hands of creditors and judgment holders. While you have little control over the outcome once a case goes to court, asset protection can offer peace of mind.
Ultimately, it's essential to take steps to protect your assets, especially if you're at risk of being sued or have significant financial obligations. With asset protection, you can minimize your exposure to potential risks and safeguard your hard-earned wealth.
Through legal options, the office of T. Verner Smith may be able to advise you on methods to protect your assets.
Call us at (731) 423-1888 and schedule a free consultation.
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Call us at (731) 423-1888