Divorce can affect every part of your life in Rhode Island, including financial impacts that you may not think of at first. You have to come to an agreement with your spouse about these financial impacts in order to determine your future security. Continue reading for some information that could affect these agreements.
The first financial impact of divorce is the division of property owned by both you and your spouse. There are many methods of property division, including bartering in which you exchange pieces of property for others. You could also sell pieces of property and divide the income that comes from the sales. It is important to determine who will keep your home or if you will sell it.
The second and more difficult financial impact of divorce is the division of debt. Make sure you have a copy of your credit report before you begin any discussion. Methods for solving the debt include:
- Paying it off now
- Taking on the debt in exchange for other assets
- Splitting the cost of the debts evenly
The financial impacts of your taxes after divorce are some of the most overlooked. Divorce can impact tax deductions, filing status and more depending on the tax laws of your state. You also have to determine who will get certain exemptions when filing taxes after divorce, including exemptions for children.
Retirement funds division
Another complicated financial asset to divide after divorce is your retirement fund. Each type of fund faces its own guidelines regarding division; IRAs, for instance, face an even split for any funds added after the marriage. After you come to an agreement on the division, it is important to determine who will continue to contribute to the accounts.
Making a divorce agreement with a professional’s help
Divorce has many financial impacts associated with it other than the costs of a lawyer. An agreement may come much easier when you are working with an experienced lawyer who understands your needs.