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Finances should be top of mind during divorce

finances-during-divorce

Money has been called the root of all evil, literally since biblical times. While that may or may not be true, it is frequently the root cause of a divorce. Not surprisingly, money will also be a major topic of discussion during proceedings to dissolve a marriage.

It has been suggested that there are four key areas of finance couples in the midst of a separation need to deal with, whether they live in British Columbia or anywhere else. The number one aspect is asset division. Assets range from small to large, and from simple to complex. The family home is an obvious example; should it be sold, or taken over by one party or the other? These same questions need to be asked about all the contents of the home, joint possessions and even investments and holdings.

Next on the list is the division of debts. Debts are just as much communal property in a marriage as assets, and many people fail to consider this before heading into a divorce. Credit card companies, for example, can come after either party when an account is held jointly. It is important to either settle debts with the proceeds from the sale of assets, or arrange a fair division of remaining debt.

Taxes occupy the third spot on the list. Not only will divorced couples be ticking a new and unfamiliar box in the marital status portion of their income tax forms, but their actual tax situation may also have changed. Capital gains from the sale of assets may need to be claimed, and any support payments being made or received may also impact an individual’s taxes. Last but not least are any children that came out of the union. Providing for them should be a priority for both parents, especially for the parent giving the child or children a home.

The financial ramifications of divorce are far-reaching and complex. For those who are able, a family law firm in British Columbia may be able to help as the parties mediate a solution that benefits both parties. And if litigation is the only choice, having the assistance of an experienced attorney might be the best way to achieve individual goals.

Source: goodmenproject.com, “4 Top Money Issues In Divorce“, Colin Amos, Oct. 24, 2016

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