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Are you financially prepared for divorce?

On Behalf of | Aug 25, 2021 | Divorce |

When a North Carolina spouse determines that his or her marriage is no longer sustainable, it often sets off a series of life-changing events. Especially if you have children, filing for divorce can have significant financial implications.  

The more informed and more prepared you are regarding state property division guidelines and other financial matters in divorce, the better able you’ll be to protect your financial interests, as well as the best interests of your children.  

Taxes are part of life, including in a divorce 

Some married couples do their own taxes while others hire accountants to fill out their income tax returns each year. Either way, if you or your spouse files for divorce, it is a good idea to seek clarification regarding tax laws, such as which parent will be able to claim “head of household” status or claim a child as a dependent. 

It is critical that you clearly understand every issue before signing a child custody or property division agreement. Especially if you and your spouse typically filed a joint tax return, the way you do your taxes after your divorce may change. 

Property division proceedings include debt 

North Carolina operates under equitable property guidelines in divorce. This means that a judge overseeing a particular case will not necessarily split marital property 50/50 but will determine a fair division between spouses. 

What many people forget is that property division proceedings do not only pertain to assets but also to any debt spouses may have incurred during marriage. The good news is that spouses can agree to negotiate the terms of their settlement by attending mediation sessions instead of entering litigation.  

Answers to financial questions in a divorce 

When you transition to a single-income household after a divorce, finances undoubtedly become a top priority. It is helpful to speak with a financial adviser as well as a legal advocate who is well-versed in property division laws before heading to court.  

However, if you want to avoid having to go to court at all, you can explore options for mediation or other forms of dispute resolution instead. Mediation might be a good choice if you believe that you and your ex can have peaceful discussions and agree to work as a team to resolve your differences of opinion as you map out a fair settlement.