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.
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Call us at (731) 423-1888