Hecht Family Law
Free Phone Consultation
678-926-9234
X
View Our Practice Areas

Alpharetta Family Law Blog

Divorce may be unavoidable in some cases

Divorce is not an easy process. It often causes heavy stresses and it can be expensive, in terms of emotion as well as finances. Many Georgia individuals and couples delay the process as long as possible in efforts to avoid these negative effects, but there are certain situations where the only course is to end the marriage. These include circumstances of addiction, abuse or severely poor parenting. Paradoxically, many individuals in such circumstances struggle to recognize them.

Often, serious addictions develop over long periods of time, and the spouse of the addicted person scarcely notices the growing detriment to his or her own life. When the addiction can no longer be ignored, though, it may be time for the non-addicted party to consider divorce. It can be especially difficult to leave the person in a bad situation, but if the addict refuses to get treatment or denies the problem exists, there is little even the most caring person can do.

Large money transfer by spouse is a warning sign of trouble

Married partners in Georgia generally work out how to share income and pay bills. Many people use a joint bank account, but trouble can arise if one spouse starts to act suspiciously with money. Financial advisers warn people that, even when the law could be on their side, recovering money after a spouse has moved it is always more difficult than preventing its loss.

The situation of one man, whose wife removed $130,000 from a joint account to an account in her name, only highlights the problem. In a public advice column, he revealed that he demanded that his wife return the money to their joint account or add his name to her new account. She responded that $100,000 was locked in a certificate of deposit account for a minimum of six months. She claimed to earn $500 monthly from the account. The financial adviser responding to his letter warned that she had to be lying about that figure because it was three times the current rate of return on such accounts.

How divorce can be good for the wallet

In some ways, getting a divorce may be beneficial for Georgia residentslooking to end their marriages. For instance, it may be possible to get better returns on investments as one spouse may have been riskier with a portfolio than the other would have been. It may also provide an individual with an opportunity to reset their financial priorities overall or swap out a house for an affordable apartment.

One of the largest financial benefits to getting a divorce may be that an individual can spend money how he or she sees fit. It isn't uncommon for money to be one of the causes of conflict in a relationship. Without that other person around, there is typically no need for an individual to worry about where his or her money goes. Even those with a lower income may be able to help secure their finances by making smart decisions.

Calculating the cost of a gray divorce

Older couples in Georgia and other parts of the US might become part of a gray divorce epidemic. While the divorce rate has decreased for most demographics, gray divorces, or those for couples over 50, continue to increase. One of the concerning aspects of gray divorces is how high the cost of these can be.

Gray divorces tend to be more expensive because as couples get older and stay together longer, they also accumulate more assets that must be divided once a divorce is imminent. These assets can include investment and retirement accounts as well as the family home, and often these are also of high value. A divorce can then become a very expensive conflict, with some divorces costing as much as $200,000 for a joint estate worth $1.5 million.

Dividing marital property: A potential sticking point

In the event of a divorce, you'll have many things to think about. If you don't devote the necessary time and attention to each detail, you could overlook something of vital importance.

There are many things to think about when dividing marital property. In an overall sense, you want to feel comfortable with the way things work out, despite the fact that you'll likely have to compromise at some point.

Potential errors in splitting assets during divorce

Georgia couples who are getting a divorce may have various approaches to splitting property, but it is important for each person to understand the value of assets and avoid common mistakes. Alimony and child support recipients may also want to guard against the potential loss of income by taking out a life insurance policy on the payer.

Many people may want to keep the family home and let the other party take a more liquid asset such as a checking account. However, in calculating the value of each asset, it is important to account for the cost of maintenance on the house. Furthermore, a person should make sure it is possible to do the needed upkeep on the home with just one income.

Divorce has an impact on income tax

Divorce law varies widely from state to state, but federal tax law is uniform across the country. In Georgia and the other states, for example, the Internal Revenue Service considers parties unmarried for the entirety of the year during which the divorce decree was finalized. Among the other ways in which divorce will affect taxes are with regard to alimony, dependents and certain tax breaks.

Alimony payments are deductible on Form 1040, regardless of whether the individual itemizes deductions. Those who receive alimony payments are required to claim them as income, likewise, on Form 1040. In order to qualify as alimony, a payment must be required by the separation or divorce agreement and must be paid in cash, which is defined to include checks and money orders as well. Child support, on the other hand, is neither deductible by the payer nor taxable to the recipient.

Divorce rates by profession

In Georgia, people end their marriages for many different reasons. A study reveals that people in certain professions may be much likelier to get divorced than those who work in other types of jobs. In general, those with the highest incomes are less likely to get divorced than those with lower incomes.

Researchers at FlowingData reviewed data from the 2015 American Community Survey, looking at different professions and their rates of divorce. They discovered that people who were employed in nightlife professions and those involved in the transportation or travel industries were the most likely to get divorced. By contrast, the researchers found that those who were employed as medical professionals, software developers, actuaries and scientists were the least likely.

Providing stability for children after a divorce

Georgia parents who are divorced will need to continue working with their exes to raise their children. This can get complicated when there are two households that have completely different rules. By keeping the best interests of their children at heart, however, parents can provide stability, order, constancy and structure during an otherwise chaotic time.

Agreeing to certain rules that apply in both households is one way to provide stability. For children, having to follow different rules in each house can cause confusion as they struggle to figure out how they should behave. While face-to-face meetings might be uncomfortable for parents during and after a divorce, it is recommended that parents take the time to sit down and negotiate key aspects of raising their children, such as bedtime hour. If the children are older than 6, the parents might also involve them when setting up certain rules.

Dealing with retirement during property division talks

Divorcing couples in Georgia often focus on their immediate needs during property division negotiations, but the decisions they make can cast very long shadows. These discussions frequently become mired in acrimony over assets with high sentimental values, and people sometimes make decisions that jeopardize their long-term financial security in pursuit of short-term goals.

Dividing retirement accounts can be a particularly thorny issue during property division talks. Making changes to retirement plans can incur fees and have tax consequences, and people should take these factors into consideration when addressing these matters. When withdrawals must be made, it may be prudent to take the money needed from Roth IRAs because these contributions are taxed upfront. Timing is also a factor as both traditional and Roth IRA assets must be divided within a year of the formal divorce date to avoid taxation.

Ask a legal question

Get Your Questions Answered

At Hecht Family Law we understand that this is not only a very trying time for you, but that you want to get what you feel you deserve during the divorce process. We will always keep your end goal in mind.

Ready to rest easy tonight? Take a moment to contact Hecht Family Law. We offer free phone consultations, or you could send us an email to discuss your family law matter today.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy