Divorce can be a highly emotional process. However, it's also a financial one. Whether you have a single home and a couple of retirement and investment accounts or you have multiple properties and millions of dollars in other assets, you need to understand what you're dividing and how your division of those assets (and debts) will impact your life going forward.
Some people end up being their own worst enemies when they're going through a divorce. The emotions they're feeling about their spouse and the breakdown of the marriage can get in the way of making decisions that are in their best interests -- and, more importantly, their children's interests.
Most of the changes brought about by the Tax Cuts & Jobs Act of 2017 (TCJA) took effect in Tax Year 2018. One of the most reported-on changes, however, doesn't impact taxpayers until they file their 2019 taxes. That's the removal of the tax implications of alimony payments.
Texas law requires that divorcing couples at least attempt mediation. However, many couples choose to continue the mediation process through to the end to divide their assets and debts and determine custody and support issues. If you and your spouse can work together to settle these matters, mediation is less expensive and time-consuming than a litigated divorce. There are other -- possibly even more important -- benefits. Let's look at a few of them.
You've reached the point in your marriage where you're ready to tell your spouse that you want a divorce. With the end of the year closing in, is it better to have one last holiday season together and wait until the new year to announce your intentions? Should you do it now rather than pretend that everything is fine over the holidays?
A former Texas lieutenant governor is facing a lawsuit by his ex-wife alleging that he has failed to repay her $6.7 million in personal and business loans she made to him during their marriage, as designated in their 2016 divorce agreement. She also says that he owes her millions in unpaid alimony.
Children with parents who have alcohol abuse issues can suffer from behavioral problems, depression and anxiety. Alcoholic parents too often fail to care for their children properly. At worst, they can be neglectful or even abusive.
Younger married couples are more likely to keep their money in separate accounts than older ones are. That's one of the findings of a recent Bank of America survey. Some 28% of Millennial spouses report that they have separate accounts. They're more than twice as likely to have separate accounts as baby boomers and even Gen Xers.
Written in collaboration with Tuck.com
Financial anxiety and disagreements over money are among the primary causes of marital problems. In a study last year by Northwestern Mutual, over 40% of the 2,000 people surveyed said that financial anxiety impacted their marriage or relationship with their significant other.