Most Divorce Hassles Over Finances Call For Careful Planning

One of the most contentious issues during a marriage involves finances. Unfortunately, the process of getting a divorce also often involves disputes about money, usually over how to divide marital assets. Kentucky residents who are preparing to file for a divorce typically benefit from carefully reviewing their financial situations first.

Family courts in Kentucky seek to ensure that marital assets are distributed as equitably as possible. However, that does not necessarily entail splitting the marital property equally. Assets that appear to be comparable in value during the settlement negotiations do not always translate in an equitable split since some assets — such as retirement saving accounts — may be subjected to fees and penalties if they are accessed early. Likewise, other assets may grow in value over time while a spouse may have been awarded an account that stays static or loses value.

Each spouse may need to evaluate the cost of maintaining the marital home before deciding whether it should be sold. Though one party may think that children will fare better if they remain in the family house, the ongoing cost of maintaining the home must be considered. When it comes to settling other financial matters such as distinguishing between marital property and separate property, having clear records and separate accounts for particular assets can make the property division process easier.

Finally, couples may need to decide how to divide debts such as student loans and other unsecured obligations. A spouse who helped pay down the other spouse’s student loans may seek reimbursement during the settlement process. The implications of changing tax laws may also influence divorce negotiations. Kentucky residents may benefit from the advice of financial professionals along with legal guidance from an experienced attorney in order to obtain the settlement agreement that best suits their individual needs.

Are You and Your Co-Parent Ready For the School Year?

Going through a divorce means changes for everyone in the family. Making those changes easier for everyone involved may require some intense and thoughtful negotiations, especially when it comes to your parenting plan.

The impending school year may help remind you and the other parent that you need to set some grounds rules when it comes to communicating with the school and attending events. Whatever decisions you make for your family, they ought to help everyone start the school year on the right foot.

Sharing information

Keeping each other informed will be a big part of the equation. The two of you may be ending your marital relationship, but you don’t stop being parents. Remaining focused on that point may make it less difficult to keep the lines of communication open between you since it’s about your kids. This may mean being accountable to the other parent on occasion, but if it helps ensure a good school year for your children, you may find it worth it.

The children’s schools will also need to be aware of your changed circumstances. You may request that communications go to both of you in some manner that is agreeable to everyone. Perhaps you will have a joint email account only for contact with teachers and school personnel. Perhaps one of you will receive phone calls and promise to contact the other parent right away via text, email or whatever way you both choose. Be sure that teachers are willing to work with you when it comes to these arrangements.

Will you attend parent-teacher conferences together? More than likely, it would make life easier for the teachers involved. After all, these changes are yours, not theirs. You will also need to make sure that the school knows how you intend to handle drop offs and pickups. Your students may have other school needs or obligations that require addressing in your parenting plan as well.

Putting it all on paper

Whatever choices you make regarding keeping abreast of how your children are doing at school, make sure that you write them down. The more detail you include in your parenting plan, the better the odds are that each of you will follow through with your agreements.

You may also include a way to resolve any disputes or other issues that come up during the school year since you know that will probably happen. Even married parents never agree on everything. The more prepared you are from the start, the better off everyone will be, and the better school year everyone may have.

Divorce Can Take a Toll On Finances For Both Parties

It is often thought that a man will absorb most of the cost when a marriage ends. However, either party can sustain significant monetary damages if the spouses choose to make the divorce process more acrimonious. Kentucky residents who are preparing to file for a divorce may benefit from seeking experienced advice in order to preserve one’s financial security.

One woman shared her experience when she and her husband sought to end their marriage. According to this former wife, she was the primary provider both before and during the 11-year marriage. She earned a comfortable six-figure salary in her profession while her husband struggled to build a career as a stylist. She recounted how she provided the majority of their lifestyle and also paid the cost of achieving a successful pregnancy.

After the birth of their daughter, the husband reduced his workload in order to purportedly care for their child. The strain on the marriage became unsustainable, and the husband filed for divorce and primary custody — which he did not receive. The woman claims that she wound up paying the costs for the divorce, including for the additional professionals who were brought in after her spouse alleged that she suffered from mental illnesses.

The woman says that her divorce cost approximately $250,000. She resorted to selling her apartment and was required to split her retirement savings. In addition, she was ordered to provide spousal support for two years. She claimed that, had her ex-husband accepted her initial settlement proposal, they both would have fared better financially. 

This case may not be the exception since women are experiencing greater success in the workplace than they did a generation ago. Every family’s situation is unique and requires an individually tailored approach when it comes to a divorce. Kentucky residents do have the option to consult with experienced professionals who can help them reach the settlement agreement that can help them maintain a secure financial footing. 

There Are Critical Choices When Facing a High Asset Divorce

In the past, studies indicated that women fared worse financially after a divorce. The phenomenon was dubbed the ‘divorce gap’ and perpetuated the myth that a woman was less likely to recoup financially after a marriage ended. Kentucky residents — whether male or female — who are facing a high asset divorce have several difficult decisions to make when working on a settlement agreement.

A recent study seems to suggest that divorced women are more likely to be homeowners. The implication is that these spouses elected to retain a family home during their divorce proceedings. Unfortunately, many professionals say that this is often a decision that women will regret as the cost of upkeep and taxes may strain their finances. Instead, it is advised that both spouses carefully consider dividing assets that will fund a comfortable retirement.

While the study conducted by Center for Retirement Research found that divorced women who have remained single are more likely to own a home and enjoy more financial security than never-married women, this may be due in part to the fact that they were in a better position to prepare financially during their divorce. Furthermore, homeowners may be better positioned for retirement since they already have a considerable asset and likely also have a significant amount of appreciation in the home at their disposal. Though single women have historically enjoyed higher incomes, the process of dividing assets may allow a spouse to obtain a portion of assets that boost their financial standing.

In the current economic climate, it is possible that either spouse may struggle financially after a marriage ends. Kentucky residents who wish to maintain a standard of living that will best meet their needs may be unsure of how to approach the division of their marital assets. In order for individuals to realize financial security after a high asset divorce, it may be prudent to consult with professionals who can provide the guidance they need to achieve the financial goals they desire.

 

It Is Vital To Know the Truths From the Myths in Military Divorce

Regardless of whether one is part of the military life through service or marriage, a dissolution is a confusing and emotional undertaking that requires accurate information. Those who are seeking a military divorce may struggle to understand the process — including what is truth and what is false information. Kentucky residents who are preparing for this type of dissolution may be best served by seeking accurate information from experienced professionals.

One of the most important aspects of a military divorce is the dividing of pension pay and how much a former spouse is entitled to receive. Without a knowledgeable attorney, it is possible that a military member could wind up signing over more of the pension than a spouse would be entitled to receive. Likewise, the Survivor Benefit Plan is another vital benefit that can be overlooked if one is unfamiliar with this benefit, which allows a former spouse to collect up to 55 percent of a deceased member’s pension under certain conditions.

Another costly mistake is failing to file in the service member’s legal state of residence when seeking a portion of the pension. Furthermore, it is recommended that one does not sign any documents that could give consent to dividing a pension unless one is fully aware of the consequences of doing so. In cases where a service member needs to delay divorce proceedings due to duty obligations, he or she can invoke the Servicemembers Civil Relief Act for a time until his or her situation is more conducive for proceeding.

There are several other matters that require careful consideration during a military divorce. In these matters, it is vital to have as mush access to correct information as possible in order to avoid making a mistake that could have serious financial ramifications in the future. Kentucky residents may be best served by consulting with an attorney who has experience in successfully handling these types of dissolutions.