Budgets and Saving
Whether both partners are income earners, or if only one is the primary earner for a household, a change in the relationship will change how each partner should save and spend their money. Our financial expert can work with both partners together and separately to determine how best to plan their budget, and save their income, to transition as smoothly from married to single.
A change in marital status has tax consequences and our financial expert will help guide the parties through their responsibilities in tax filings when the divorce is complete. As well, distribution of assets has its own tax consequences, as does ongoing support payments. Knowing the tax consequences of a settlement is vital to confidently signing an agreement. Our financial expert can walk both parties through what tax consequences occur given the distribution of property, ongoing support payments, if any, and any changes in financial status as a result of the dissolution.
Dividing property in a divorce is not taxable, nor is child support, or alimony as of January 2019.
Retirement accounts and savings are often a concern for couples going through a divorce, and in collaborative divorce our financial expert will make sure that both parties do not lose the plans they made for their future financial maintenance. Where in a courtroom the judge will have to decide based on evidence presented what the best was to divide up retirement savings, having a financial expert in a collaborative divorce means asking the questions necessary to both parties to make sure that the most equitable solution can be found.
- www.annualcreditreport.com One free copy (Experian) of your credit report
Budgeting and Financial Planning Information
- https://www.irs.gov/individuals/free-tax-return- preparation-for-you-by- volunteers
- https://smartasset.com/taxes/pennsylvania-paycheck- calculator