When divorcing in PA, you at may be more concerned about the emotional aspects of divorce. Will you find someone new or will you complete the rest of your life’s journey alone? How will the kids take the news? How can you soften the blow to them? After following this vein of thought for a while, you may then begin to wonder about the financial aspect.
Forbes reminds couples to start off by assessing your assets. Here are just some of the many you may have obtained together over the years:
- Savings and checking accounts
- Real estate investment trusts
- Money-market accounts
- Certificates of deposit
- Real estate property
When choosing who gets what, spouses need to remember also that not all assets have the same tax benefits or consequences. Keep this in mind when negotiating your fair share of the marital assets. What may at first seem like a great deal may be whittled away after paying taxes or early withdrawal fees.
If you own any real estate property, such as your home, splitting the property after divorce may get tricky. In most instances, when children are involved, the custodial parent may end up keeping the family house. However, many financial experts recommend selling the home and downsizing. Even if it is already paid off, maintenance may become expensive, particularly if there is a large yard, pool or other high-maintenance amenities.
Finally, there is the trouble of dividing up the debt. In some states, all debt incurred during the marriage is shared. In other states, the debt belongs to the person whose name is on the documents. Be sure to clarify this to ensure debtors do not come after you if they default. You also need to clear up credit card debts and auto loans. If anyone helped the other to pay off debt, such as student, loans, considerations may need to be made for this person to be compensated now as well.
Finances is one of the messiest aspects of getting a divorce, sometimes even more so than the rollercoaster of emotions. However, by working with professionals, you may receive the guidance you need to make the best possible decisions.
This article contains information on the financial aspect of divorcing in PA. It should not be misconstrued as or used in place of legal or financial advice.