North Carolina Divorce Lawyers Explain Important Financial Considerations during Divorce
The North Carolina divorce attorneys of Gailor, Wallis & Hunt explain that all marriages result in business transactions, such as the purchase of a home, payments on student-loans and investments in the stock market. Just as a marriage results in multiple financial transactions, a divorce results in the dissolution of those financial dealings. Nearly all divorces require complex financial transactions in order to properly distribute assets acquired during the marriage. Because many divorcing spouses have to deal with the division of marital assets, it is important each side seek counsel experienced in matters of divorce and property distribution. The Raleigh, North Carolina divorce attorneys of Gailor, Wallis & Hunt are noted for their prosecution and defense of complex business valuations, as well as difficult financial disputes in cases of separation and divorce. Gailor, Wallis & Hunt offers not only legal representation, but sound advice for managing the transactions that must occur during the dissolution of a marriage in order to protect the legal and financial rights of their divorcing clients. In order to provide guidance in entering the process of divorce, Gailor, Wallis& Hunt highlight an article recently published in EV Living, a Phoenix, Arizona newspaper, titled Budget Considerations for Consumers Facing Divorce , which discusses the financial aspects that must be examined before and during divorce proceedings.
The process of divorce typically results in two, single-income homes, as opposed to a single, double-income home. This fact can create a huge decline in the standard of living of one or both former spouses and children. The cost of living practically doubles for each party involved, as each party is required to readjust to paying a full mortgage or rent, and taking on loan payments and bills.
It is important that people facing divorce assess their individual financial situations in order to decide what changes need to be made in spending and saving money in order to ensure his or her economic survival.
The article points out financial matters to examine:
Childcare: Childcare needs and duties often shift during a divorce. It is important to consider where the child(ren) is(are) going to live, and for how long. Also the custodial spouse must decide whether he or she will be working the same hours post-divorce and if extra childcare is needed. The cost of child care can be a major factor in budgeting for the new family unit.
Living Situation: If an estranged husband and wife own a home, together they will need to decide whether the house will be sold, and, in the short term, who will pay the mortgage. Budgeting for new security deposits or a new home purchase may be a necessary consideration if one spouse will by buying a new home or will be renting a home or apartment.
Health Insurance: Because married couples often use the same health insurance plan, one often loses those benefits when the marriage ends. If you are on your spouse’s health insurance plan, determine how long you can remain as a plan beneficiary after the separation and/or divorce and when benefits might be cut off. Also add new health insurance payments into the monthly budget.
Tax Planning: At least the first year following separation an estranged husband and wife will need to decide whether to file as married, married living separate or as singles. Consult a tax professional if you are in the midst of divorce to ensure you obtain the most cost efficient results. Furthermore, entitlement to child dependency exemptions may be controlled by who has physical custody of the children but can be reallocated by consent. These topics should be discussed in advance.
The article also points out that divorce agreements do not invalidate debt agreements. While estranged spouses may agree that one party pays off a credit card debt, if both names are on the account, both names will be affected by late payments or lack of payment. The divorce attorneys of Gailor, Wallis & Hunt stress the importance of speaking with a lawyer skilled in the financial transactions of divorce, as faulty decisions and oversights could affect your credit for extended periods of time.
The highly respected North Carolina lawyers of Gailor, Wallis & Hunt are dedicated to assisting men and women obtain a fair and equitable divorce settlement when divorce is the only option. GWH offers knowledge, skill and experience in the many areas of family law that is second to none.
To contact any of the attorneys at Gailor, Wallis & Hunt, call them at (866) 362-7586, or visit their website at www.gailorwallishunt.com.
Gailor, Wallis & Hunt, PLLC
Divorce is Tough – So Are We
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