Arizona couples seeking a divorce might benefit from a June 3 report about asset division. An advisor had counseled two clients who had been married for over 40 years.
This professional formerly met with the man and woman together. Then, the financial consultant starting meeting with them individually. In the June report, the advisor stated different options the couple has concerning property division. The report made indicated that most states allow for couples to keep pre-marriage real estate and certain types of investment funds. However, most states also require equitable division of marital property, and this includes the home they lived in together. The advisor said couples may want to sell so they can receive a substantial capital gain tax exclusion. However, this consultant also said that one of the two parties might want to live in the home, and a portion of a mortgage payment could offset alimony payments.
The report introduced guidelines for divorcing partners who want to figure out how to pay the least amount of taxes, too. For instance, the financial advisor said the longtime couple who wants to end it after 40 years can still file jointly if they want. This money expert also stated that when doing so they will probably pay lower taxes. However, they also risk a spouse not paying his or her share. In this case, the financial consultant said they might be better off filing singly. Once divorced, they would have to file alone, but since they would no longer be a couple, they might pay fewer taxes.
According to the financial advisor, of the couple terminating their 40-year union, both made quite a bit of money. Furthermore, alimony and child support were not issues for them. Child custody was not, either. Their main concerns were about taxes owed and about the post-marriage agreement modification. In any case, financial expert did help them. However, they also would benefit from a lawyer who can facilitate a peaceful mediation when emotions run high.
Source: Nerd Wallet, “Divorce: Making Sense of the Confusion“, J. Kevin Stophel, June 03, 2014