Ohio couples who are planning to get divorced should know that the process can be lengthy and have emotional consequences. They should also be particularly aware of how getting divorced can negatively affect their finances in the present and in the future and of what steps to take to mitigate that impact.
For many people, the time during a divorce can be very emotionally challenging. They may attempt to use spending as a way to cope with what they are feeling. Spending may also be used as a way to celebrate no longer being married. Individuals getting divorced or who are already divorced should take care to reign in their spending, as they may not have the financial resources they had when they were married.
Divorcing individuals may also be tempted to cash in their investments to pay their current bills. However, selling certain types of assets can result in hefty taxes that will have to be paid later. Also, the assets will not be able to be applied to any future financial goals that may be in place.
Another financial issue divorcing couples should keep in mind is how the tax treatment of spousal support will change for divorces that are finalized beginning in 2019. Individuals who have to pay spousal support will no longer be able to deduct they amount they pay from their taxable income.
Many people may want to use their 401(k) in order to help with costs associated with attorney fees, a new home and more after their divorce. If they do so, they should make sure to have taxes withheld to avoid a large tax bill in the future.
A divorce attorney may litigate to obtain the desired divorce settlement terms for clients. The attorney might work to resolve disputes regarding the division of marital assets, retirement accounts and real estate.