On behalf of Kelly Law Office, LLC posted in high-asset divorce on Wednesday, September 11, 2019.
When Ohio couples get a divorce, they should take a number of financial considerations into account. For example, the couple may have a home they want to sell. However, they may need to decide how they will pay expenses associated with it and how they will split the proceeds when it sells.
If they sell the house at a loss, they may have to work out how they will pay the debt. Regardless of what a divorce agreement says, creditors will consider the person or people who are on the mortgage or any other debt responsible. Another consideration is child and spousal support. This may be negotiated by the couple instead of going to court. People should keep in mind that their expenses may rise after the divorce and account for this in their budgeting.
People should also be aware of whether taxes may be affected by the divorce itself and by property division. It is important to keep in mind that although two accounts may have the same amount of money in them, if one is taxed on withdrawal and the other is not, one may be significantly more valuable than the other. If one spouse has a pension plan that includes survivor’s benefits, the two may want to decide whether the other spouse will be eligible for these benefits.
The process of property division may be complex even if a couple’s only assets are a home and a retirement account. For example, if there is a 401(k) that must be divided, the couple will need a document called a qualified domestic relations order that must be approved by the plan administrator. Additional complications may arise if there are a complicated investments or they couple owns a business. In the latter case, one may need to buy out the other.