Filing and going through a divorce can be a very stressful time and situation. While it is an emotional experience, you don’t have to let it take a toll on your future financial situation. Here are three common financial mistakes that should be avoided when filing for a Florida divorce.
Not Considering Pre-Marital Assets
When you are going to file for a divorce, it makes sense to determine which assets you had before you were married and which were accumulated during marriage. Depending on the circumstances, this could impact how all of the total assets are split.
Ignoring the Tax Implications
When a divorce is filed, it is common for one party to receive alimony, child support or both. If this is the case in your situation, you need to consider the tax implications to determine if the net amount received is sufficient. Alimony payments are made before taxes and alimony benefits are considered taxable income. Child support payments, on the other hand, are made after taxes and are not taxed for the recipient.
Cashing In Assets
When some people go through a divorce, the natural instinct is to convert all assets to cash. However, this can prove to be a mistake. If you do decide to sell all of your stocks and investments, there will be a near-term tax implication that needs to be considered. Further, you may lose out on the future dividend income and asset appreciation that can come with holding the investments further.
Protect Your Future
The process of filing for a divorce can be complicated, time-consuming, and stressful. However, The Law Offices of Jonny Kousa, P.L. is here for you. Our Coconut Creek divorce attorney is here to protect your best interests throughout the divorce process — including your financial freedom. If you are concerned about your financial freedom after divorce, please do not hesitate to reach out to us.
Set up a consultation today by calling us at (954) 626-8071.