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.
Georgia residents who are contemplating getting a divorce need to take steps to protect their financial future. Doing so can help to protect their interests as well as their children. Parents who stayed at home to raise the children should know that they are entitled to a portion of the income that a spouse earned.