Lavin & Parisi, Attorneys at Law

What should you know about the big money issues in a divorce

Photo of Karen Lavin

Illinois readers know that divorce will bring significant changes to almost every area of life. From your living arrangements to your bank account, you will have to make adjustments and shifts. Dealing with the major financial issues that present themselves at the end of a marriage is a daunting task, but you may find it beneficial to learn more about how you can pursue a strong post-divorce future despite these challenges.

As you fight for a settlement that is beneficial for both your immediate needs and your long-term objectives, you would be prudent to look at the major issues that could affect your future. These include what will happen to your home, what will happen to your estate plan, as well as how any financial decisions could also have an impact on your tax obligations going forward.

What's your divorce have to do with your taxes?

Taxes are an unfortunate part of life, and it is prudent to consider how your tax situation will change once your divorce is complete. Consider the following issues:

  • Selling your home: Perhaps staying in your home is not an option, but selling it could have tax consequences. You have the choice to sell your home, buy out your spouse's interest in the home, or sell and split the proceeds. You would be wise to consider the ramifications for each option before deciding what to do.
  • Splitting retirement savings: Retirement savings accumulated over the course of a marriage are subject to division in a divorce. When making the appropriate distributions or receiving them, it could have an effect on your taxes.

While it is difficult, it is prudent not to allow emotions to drive your decision-making during the divorce process. Major financial decisions are better when you keep a stable and secure financial future in mind, not temporary feelings. Financial decisions will have an impact in many ways, including your tax obligations for years to come after your divorce is final.

The issues that affect your future

During a divorce, your future is on the line. There are many matters to consider, not just the ones that will affect your short-term future. Whether you want to sell your home, protect yourself from unnecessary financial ramifications or learn how your divorce will impact your taxes, you have no time to lose in getting the support and guidance you deserve.

You have the right to pursue an outcome to your divorce that allows you to have a prosperous life after the process is final. As you work to craft an agreement that meets your objectives, it is beneficial to consider how property division decisions will impact you down the road.

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