Going through a divorce can be one of the most challenging phases in anyone's life,…
Kansas spouses who are getting divorced should avoid some common financial mistakes. For example, in the emotional turmoil of divorce, a recently separated ex might be tempted to go on a shopping spree to feel better. However, the bills will eventually come in, and this can cause financial problems.
Making a financial plan is important because it can help guide decisions during and after a divorce. For example, it can be a mistake to sell some retirement assets because there could be significant taxes to pay. If a person needs to pay bills, there may be better ways to do so. One should be especially careful in deciding what to do about the shared home. The mortgage and upkeep could be too much for a person to afford on a single income.
Alimony can also cause problems. Some exes may go as far as to quit their jobs to avoid paying alimony, but this is not a lasting solution. Furthermore, people should be aware that for divorces finalized after the end of 2018, alimony will not be tax-deductible or tax-payable.
Couples who are getting a divorce and need to divide property may want to try to negotiate an agreement. Although this can be difficult, negotiation will allow more control over the outcome than going to court. Couples might be able to reach creative solutions for property division that better suit them. For example, one may care more about a certain asset, such as a home or car. They can then compromise keep this asset in exchange for another.