• Free Consultations
  • Home & Hospital Visits
  • Downtown Parking
Coins & Cards
  1. Home
  2.  » 
  3. Uncategorized
  4.  » Money mistakes to avoid when your marriage ends

Money mistakes to avoid when your marriage ends

On Behalf of | Sep 3, 2020 | Uncategorized

A divorce can have a significant impact on your financial future. Therefore, it is important that you create a plan to preserve your assets and improve your chances of maintaining a comfortable lifestyle as a single person. In Ohio, joint assets are typically divided in an equitable fashion, which means that you may take possession of a family home or money in a joint bank account.

What equitable distribution means

Joint assets are allocated based on a number of factors such as your age and ability to earn money. If you are near retirement age and have few marketable skills, you may be entitled to the majority of any property that was acquired during your marriage. Prior to engaging in settlement negotiations, you should review your financial situation to determine what you might need to live comfortably as a single person. This can help you judge whether or not a settlement proposal meets your needs.

Consider the tax implications of a settlement

If you and your spouse decide to sell the marital home, you may need to pay capital gains taxes on any profits generated by the sale. The same is true if you sell stocks or other assets that you receive in a settlement in the future. It’s also important to consider the implications of claiming a child as a dependent on a tax return.

If your marriage is coming to an end, it may be beneficial to hire a family law professional to help you navigate the divorce process. An attorney may explain more about protecting separate property or obtaining joint assets in a final settlement. Your legal representative may also help you learn more about the tax implications of receiving or selling assets after the divorce is official.