Divorces can make you think that your ex is your worst enemy on the planet. Sorry to make it worse, but your ultimate enemy in a divorce appears in the form of government taxes. Since a divorce is a lot to take on, most people tend to forget their tax obligations during their divorce. While you may think that this is the least of your problems, it can easily become your worst nightmare. Disregarding the taxes during a divorce can ruin your future. Thus, it is important for you to acquaint yourself with the following information.
Do Not Underestimate
Before you agree on the separation of the assets, make sure to take the taxes into consideration. Let’s say that your ex is giving you a monthly allowance of $2000. Do not fall for this trap thinking that it is a generous offer. Most divorce offers are sugarcoated with a large capital gain. However, what you must focus on is the tax deduction. Once the amount is subjected to federal taxes, you will have a significantly lower amount than you initially received. Therefore, before you say ‘yes’ to a large amount, double check the tax implications.
Make Your Asset Inventory
In any marriage, there is a responsible spouse and a slightly irresponsible spouse. The former will always oversee the incomes of the household and therefore will have a better understanding about the assets under the roof. If you are this person, then you have an advantage over your ex that you can use for your benefit. Since you are aware of all the assets and debts of your spouse, you will be able to assume a suitable figure for the alimony. This way, your ex will not be able to fool you with a small figure.
Be Open about Your Assets
When there are big bucks at stake, some people take serious measures to reduce their asset value. They hide the real amount and declare a lower figure. This makes them look financially unstable and thereby reduces the amount that they have to contribute. This kind of sneakiness and greediness is what leads to ugly divorces. Therefore, ask a divorce attorney in Scottsdale to do a thorough analysis of your ex’s income and assets. This way, you can ensure that you get what you deserve.
Be Realistic with Your Expectations
Usually, your ex will make you an offer before you make the divorce legal. Before you offer your opinion on the matter, ensure whether it is profitable for you or not. For instance, if you are being offered an investment that will grow at 15% per year, do not get excited. Your investment may not expand as promised, or worse, it can damage your finances. You cannot assure that an investment will benefit you – especially under these unpredictable financial circumstances. Therefore, it is better to opt for liquid assets since they provide greater financial security.
As you can see, a divorce is more complicated than you thought – especially where money is concerned. Therefore, plan out your every move and use professional help to get through it without damaging yourself both financially and emotionally.
This is a sponsored article written by The Canterbury Law Group and expresses their opinions alone.