Money matters are often a pivotal point in most Arkansas residents’ lives. Some people may worry about not having enough, while others may worry about how to maintain the wealth they have. When a major life change occurs, concerns about financial affairs may affect anyone of any income level. In particular, if you are getting a divorce, you may worry about how the split will affect your financial future.
It is likely that you will face some financial fallout from your divorce, whether significant or minor. If you and your soon-to-be ex-spouse created a prenuptial agreement before getting married, you may have fewer financial surprises coming your way than couples without such an agreement, depending on the specific terms you included in the document. Still, it is important to be prepared for what could be ahead whether you have a prenup or not.
Common topics to expect
If you do not have children, your main priority in your divorce case may revolve around property division. Even if you do have kids, you will still have financial matters to consider, such as child support, that may affect your financial stability later. Nonetheless, you may have the ability to review and prepare for the following common money matters that show up in divorce cases:
- Property division: As mentioned, this area may be at the top of your list when it comes to financial priorities because you do not want to lose assets that are important to you, or that have significant value, without receiving a comparable asset.
- Taxes: Many couples do not immediately think about how their divorce will affect their tax situation, but you may need to consider how any spousal support, legal fees, dependent exemptions and others will change your tax situation.
- Debt: Though asset division often comes to mind during divorce, it is critical to remember that the court will also divide your marital debt obligations.
- Retirement accounts: Divorcing later in life may have a more significant effect on your retirement accounts, but even as a young person it is vital to determine whether your accounts are at risk and how you can preserve them as much as possible.
Though divorce may be what is best for you and your family, the financial repercussions can often give individuals pause before they move forward with the process. Certainly, it can be difficult to not fully know what the outcomes of your case may be, but gaining reliable legal information and preparing as well as possible may allow you to feel more confident moving forward.