Pre-divorce planning may be the most important planning you ever do and can result in a settlement that's more fair to both of you.
Ask:
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Your lawyer to explain your rights and options under state law.
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Your tax accountant to help you inventory your marital assets and liabilities and to explain how the dissolution of the marriage will affect your personal finances. |
As soon as a divorce becomes a real possibility, you should:
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Open a new checking account in your name alone and apply for your own credit cards, if you don't already have them. |
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Notify your broker that both of you must approve transactions in any jointly held brokerage accounts.
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Notify your bank to freeze jointly held checking and savings accounts. |
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Notify credit card companies that you will no longer be responsible for charges on any joint credit cards. |
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Submit all of the notifications in writing and send the letters
"return receipt requested." |
The settlement should address future needs as well:
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The parent who provides child support should be covered by life insurance. |
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Additional child care expenses should be provided for.
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If you're a woman who left the work force during the marriage, make sure the settlement will: |
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Notify credit card companies that you will no longer be responsible for charges on any joint credit cards. |
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Enhance your ability to get a good job |
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Provide for your health insurance |
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If your spouse's company employs at least 20 people, you're automatically entitled to receive health coverage from its employee benefit plan for 36 months after the divorce is final. The request for coverage must be in writing. |
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Preserve your right to retirement income from your spouse's pension
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Put the emphasis on getting a fair financial settlement, not getting even. Don't sign anything before finding out the tax consequences. A $150,000 stock portfolio and a $150,000 house have the same market value but very different tax liabilities. We would rather you come in and talk to us; however, if you can't, then call or email with questions or concerns.
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Helpful Links: |
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TAX Updates
- Advantax 
- Tax$avers
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Learn more about enrolled Agents |
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Need a Form from the IRS |
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Newsletter & other current information |
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Download Adobe Acrobat |
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