How to Have a Financially Smart Divorce

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While the decision to get married is generally driven by emotions, a Pasadena divorce is first and foremost a business transaction. Instead of being overwhelmed by your emotions, it's best to aspire to have what experts refer to as a financially smart divorce. Never lose sight of the fact that the decisions you make now will affect your life for many years to come.

The marital home is one of the largest assets most couples have. The decision to keep the marital home is not one that should be taken lightly, however. It will do you no good to be granted possession of the home if your income alone will not cover the expenses for the home, including property taxes and maintenance.

Retirement accounts are often overlooked but can be a significant asset to divide during the divorce. You may be entitled to a portion of your spouse's retirement funds, which may go a long way towards ensuring your own post-divorce financial security.

If your divorce will involve spousal support, remember that alimony is a tax deduction for the person who pays it and taxable income for the person who receives it.

If you have children with your ex-spouse, ask that provisions for health insurance and college tuition be included in the settlement. These are two large expenses that both parties should share responsibility for.

Marital debts, like marital assets, will need to be divided as part of the divorce settlement. If the higher earning spouse is ordered to repay a larger portion of the marital debts, however, it may reduce the amount of alimony he or she is obligated to pay.

How Can We Help?

If you are in need of a Pasadena divorce attorney, please call our office at (626) 683-8113 or email us at info@PasadenaLawOffice.com. We are are eager to assist you in obtaining a fair and equitable settlement that will allow you to move on to the next chapter of your life.

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