During a divorce, spouses usually concentrate on property division, child custody and support. However, like other life-altering events, it has important tax consequences requiring planning and impacting negotiations as well.
The new tax law recently enacted by Congress has changed financial planning for businesses and individual taxpayers. Its provisions may now require review of prenuptial agreements that govern property division and support for Louisiana couples. Tax changes may invalidate parts of prenups or surprise couples during divorce.
A divorce may be a stressful, complicated and weary process for Louisiana couples ending their marriage. However, being organized and documenting as much as possible can help in court proceedings or mediation, and help a spouse carefully and calmly deal with issues.
Social media is playing a part in divorce throughout the country, and spouses should address postings with caution. At least 40 to 50 percent of marriages in this country end in divorce, according to the American Psychological Society. There are many ways couples address the end of their marriages on social media. Some spouses simply remove their married status from Facebook. Other couples draft and post a mutually-agreeable announcement.
Going through a divorce requires mental and financial preparation. Taking these steps before filing helps assure that a family can take care of their future expenses. First, a spouse should open their own checking and savings account to take care of their financial needs. An accounting of deposits to the other spouse, however, helps assure that there are no justifiable accusations that the spouse is hiding assets.
Married couples acquire both property and debt during their relationship. In a divorce, in addition to marital property, Louisiana courts must also address how debt should be allocated. These decisions can have serious and long-term financial consequences.
Spouses should make legal, financial and personal changes after their marriage ends and the divorce decree is issued. A spouse who changed their name when they got married should consider taking their earlier pre-marriage name back.
A divorce can have a significant impact on retirement plans. This problem is growing because the rate of divorce for spouses over 50-years-old doubled over the last 20 years, and older divorce even grew for remarried couples.
Financial support of former spouses and the couple's children is an important divorce issue in Louisiana that can have long-term consequences. This can determine whether a family can pay for daily living expenses, education and health care, and whether they can have a reasonable standard of living.
Going through settlement negotiations or litigation and issuance of the divorce decree does not end all the financial and legal issues after the end of a marriage. There are still practical matters that must be addressed following the end of this often long and tedious process.