Unless you have been through a divorce already, you will be faced with making decisions about finances and parenting without any point of reference. That is why it is important to have an experienced team on your side to navigate the legal, financial and emotional complexities you will more than certainly face during the process of divorce.
Consider just a few of the financial issues that many do not consider when dividing marital property:
Future Tax Liabilities of Marital Assets in a Divorce
When it comes to dividing marital property, there may be some assets that have future tax liabilities you have not considered. For example, if you plan to stay in the family home until the children are through school, the amount you can exclude for capital gains when you sell the home in the future is less for a single person than a married couple – $250,000 versus $500,000. It is important to consider the tax implications of keeping the family home particularly if your home has increased significantly in value.
Retirement Plans and QDRO’S
Many people have a 401k or a pension through their company to save for retirement. If your spouse has assets in a retirement account, you are entitled to your fair share of those marital assets. However, it is necessary to have your attorney draft a qualified domestic relations order or QDRO which creates or recognizes the existence of an alternate payee’s right to, or assigns to an alternate payee the right to, receive all or a portion of the benefits payable with respect to a participant under a qualified plan.
Life Insurance Offers Protection
If you are awarded spousal maintenance and receive child support, what would happen if your ex dies unexpectedly? In some divorce cases the breadwinner will be ordered to buy life insurance naming the spouse/children as beneficiaries to ensure the financial security of the couple’s children and the surviving spouse. Without any protections in place, spouses and children relying on support are financially vulnerable.
Get Answers When Dividing Marital Assets in a Divorce
Getting a divorce is something akin to the tip of an iceberg. On the face of it, a divorce may seem pretty straightforward, however there are a whole range of complexities and financial considerations when dividing marital assets in a divorce that are just beneath the surface. Contact us at 414-210-3135 to schedule a free consultation with an experienced and knowledgeable Wisconsin family law attorney to help you avoid costly mistakes so that you can move forward with confidence and peace of mind.