Getting divorced typically isn’t an easy process, even when completely necessary. It is an emotional event often fraught with financial implications. The former may have an outsized impact on the latter if those getting the divorce here in Kentucky aren’t mindful of that possibility. Fortunately, there are several common financial issues that may arise, meaning there are clear strategies for dealing with them.
Different assets, different value
Most of the financial issues stem from how the spouses want to divide their assets, whether those assets are property, financial accounts or something else of value. People may have an emotional attachment to an asset, such as a family home, that can could their judgment of whether it is a worthwhile asset to hold on to. If one spouse wants to keep that home, he or she may not be able to easily afford it alone. Having an appraisal of the home’s true value and taking care to consider tax implications will give that person an idea of the right choice to make.
Speaking of taxes, a house or another piece of property may not be the only asset subject to taxation. In the case of stocks or financial accounts, including those for retirement, the tax impact upon each one is worth factoring into the division of assets in divorce. Even if two different assets appear to be worth the same amount, one may be subject to a higher tax rate, driving down its actual value. In the case of retirement accounts specifically, the spouse owning the account may need a qualified domestic relations order to outline how the assets of a retirement account should be divided that may reduce the tax burden.
The best investment for divorce
No matter the scenario, most people will find the advice of divorce professionals, such as a financial advisor or an attorney, invaluable. A family law attorney here in Kentucky may especially be of assistance, ensuring that the resulting divorce agreement is thorough and fair. It can set a person on the path to financial security once their marriage has officially and legally ended.