Financial issues are not always the paramount consideration in a Connecticut divorce. Yet, how the couple approaches the split and property division in the final settlement can be extremely costly to both parties, often needlessly. Attempting to reach an agreement without acrimony is best, but even when there are fundamental differences, there’s no need to throw money away by making hasty decisions that fail to account for all the factors.
Personal finance experts caution that tax consequences associated with some assets must be factored into the property division equation. This is especially true for people over 50. One reason for this is that older individuals tend to have accumulated more in their retirement accounts than younger couples facing divorce. A court decree may be necessary to split work-related accounts between the spouses.
In addition, the recent changes in the tax laws affect divorcing couples. For divorces finalized after Dec. 31, alimony will no longer be deductible by the payor. Furthermore, the receiving ex will not have to pay taxes on the support payments. It’s also important to consider the new cap on the amount that can be deducted for state and local taxes. This means that the true cost of being a homeowner could become more expensive. These tax issues can be a factor for the spouse who keeps the family home, especially if that spouse was not the primary breadwinner.
The legal issues in a high-asset divorce can be daunting. However, a divorce lawyer can help a client with the financial concerns. In addition, legal counsel could address child custody, child support and post-agreement modifications.