When a wealthy Georgia couple decides to end their marriage, the high stakes could inspire lengthy disputes and costly court battles. Such drama is not inevitable, however, as long as the spouses manage their emotions and embrace compromises. Individuals with a high net worth might also run companies, and they should consider how the divorce could impact operations and profits.
When Georgia couples get a divorce and have a 401(k) or pension to divide, they will need a document called a "qualified domestic relations order". This is one of several steps they will need to take in dividing these types of assets while avoiding paying unnecessary penalties or taxes or one person getting more than an equitable share of the account.
Individuals going through the divorce process in Georgia may need to consider how they will share custody, who will get ownership of the home, and how they will divide shared assets. The situation becomes more challenging when one or both spouses are entrepreneurs. In this case, one's business could be the largest asset that they have.
For many Georgia estranged couples, the question of how to divide credit card debt in a divorce can be just as critical as how marital assets will be split. Many wealthy couples have significant debts, and it can be important to account for this as part of the property division process. One of the most critical items to consider is jointly held credit card debt. Joint cards belong to both spouses as co-owners, so both are liable for the full amount owed. Therefore, many financial experts advise that joint debt should be eliminated as part of the divorce agreement.
After parents in Georgia get a divorce, one may be able to claim head of household and claim a tax credit for their child. However, determining how this is done can be confusing.
Addressing the division of assets in a divorce can be a contentious issue. However, before Georgia couples agree to any terms regarding how their assets are to be split, it is important that they first consider the tax ramifications of their decisions.
Retirement accounts are often an important issue for Georgia couples who divorce later in life after the age of 50. The end of 2018 marks a time of significant change regarding how divorced couples will handle their taxes. Among the biggest differences is that after January 1, 2019, tax regulations will no longer allow deductions for alimony payments, and payments will no longer count as income for the person receiving them. Some observers had predicted that the change would lead to a rush of divorce settlements during 2018.
Over the past several years, divorce has been on the rise for people over 50. Some older couples in Georgia who get a divorce may have complicated finances that make the process of property division complex. For example, more and more people are investing in annuities, but these can present problems when it is necessary to divide them in a divorce. They all have different types of rules and can lose value when split, so some couples opt instead for one person to keep the annuity and the other person to take a different asset.
Divorcing your spouse is a painful and frustrating situation that can seem to drag on for a lifetime. It is especially difficult if there are several high value assets like homes, vehicles or cash between the two of you which need to be divided. It's not uncommon for people to try to hide assets during a divorce, thereby keeping more for themselves when everything is said and done.
As Georgia residents and others welcome the arrival of spring weather, it may also be time for spring financial cleaning. This can be especially worthwhile for those who are going through a divorce. Obtaining documents before the divorce process starts can make it easier to have the information needed to negotiate a fair settlement. By getting this information early, a spouse won't have to ask a separated partner to willingly provide it.