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5 points to keep in mind when you are facing divorce

On Behalf of | Jun 8, 2022 | Divorce |

When you are preparing for an event as consequential as your divorce, you can make a copious to-do list and still forget some important items.

Here are five relevant points to consider and perhaps add to your list.

1. Retirement accounts

Certain types of retirement accounts, such as a 401(k), may require a court order before distribution can take place. You may want to make a withdrawal from the retirement funds the court awards you but remember that you could pay income tax on the amount you withdraw. There are various rules and regulations to consider but your divorce attorney can help you sort them out.

2. Tax consequences

The more marital assets there are, the more taxes play a role during property division. Consider how the tax consequences will affect your post-divorce lifestyle and budget.

3. House issues

Many people want to keep the marital home in a divorce, often for its sentimental value. If you are considering holding onto your home, remember that there will be upkeep and property taxes, probably a mortgage, and that the future value is unknown. In keeping the home you will have to make adjustments to your post-divorce budget.

4. Health insurance

If you currently have coverage under your spouse’s healthcare plan, you will need to make arrangements for a policy of your own. You may need a COBRA policy to continue your coverage until you find a suitable plan.

5. Spending alert

Finally, the court frowns on spending sprees prior to a divorce and could treat such extravagance as an advance on the assets you are to receive. Add “spend conservatively” to your to-do list.