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The Top Five Financial Issues Surrounding Divorce

The Top Five Financial Issues Surrounding Divorce

A marital transition has its effects not only at the emotional level but also financially. When your marriage is coming to an end and you live in Toronto, you might need a divorce lawyer Toronto. The divorce lawyer will guide you through the financial divorce settlement process and help you lessen the impact.

One important factor concerns the financial issues that surround the divorce. Determining how you divide the belongings that you have amassed over the years of marriage can be quite a problem. Five of the top financial issues that surround divorce include the division of property and debt, child support, alimony, taxes and retirement funds.

Most people will find a harmonious way of settling these five financial issues. There can be disagreement in some issues and the best course of action would be to find an impartial approach to settle the matter. Bartering can be one approach where the husband and the wife agree to take one thing or the other.

Marital property can also be sold and the proceeds shared. Divorcing couples can also use mediators or arbitrators. Certain laws control how property is divided in specific states and it is important for the couples to become acquainted with such laws. Seeking the advice of a top divorce lawyer Toronto is another way of getting the divorce settlement to work for both parties.

 

The Division of Property and Debt

Most times, the process of dividing property and debt involves determining who will be obligated to settling the debt that a couple has incurred. It is essential to determine what is owed and this is done by getting a joint credit report to get to know which debts are shared and which ones are individual. The debt must then be stopped from growing and then both parties can determine who will pay what.

 

The Issues of Taxes

There are some implications of tax in a divorce that cannot be ignored because otherwise, both parties might incur huge costs that run to the thousands of dollars. The couple must determine who will get the absolutions. They must also determine which fees for lawyers are exempt to tax and how to ensure that maintenance payments are tax deductible. They must also find ways to ensure that they do not make the error of having child support non-deductible.

 

Issues of Child Support

It is essential for both couples to determine how the issue of child support affects them both in a divorce. Child support is involuntary in any divorce that involves minors.

Financial Issues Divorce
Yehuda Pen [Public domain], via Wikimedia Commons

The Issues of Alimony

Marriage brings about legal rights and obligations between two people and one of those is the right to get support and also the obligation to give that support. Spousal support is known as alimony and can be ordered in situations where there is a need for continued financial support to the other party as deemed appropriate. Alimony is dependant on the financial situation of the parties.

 

Issues of Retirement in a Divorce

Should one spouse have retirement savings, the other spouse will in all likelihood be eligible to receive half the retirement savings. Such funds can be used for the other spouse’s retirement, for a down payment on a new home, for purposes of relocation costs or any present costs.

 

Dishonesty Concerning Finances

Because divorce can turn even the most well intentioned people to the worst, honesty is sometimes discarded even by the most truthful people. Souses might under report incomes or request their employees to withhold bonuses or salaries particularly if they have huge businesses or high incomes.

 

The best way to go about finding out if a spouse is cheating about their financial situation is to get a forensic accounting divorce. Issues surrounding finances during a divorce can be quite complex. However, with the help of a divorce lawyer Toronto, such matters can be handled adequately.

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