The process of dissolving a marriage is typically filled with emotional turmoil along with financial upheaval. In many situations, people getting divorced feel as though they must reinvent themselves both emotionally and monetarily. A few tips may help with the financial side of divorce in the state of Massachusetts.
First, reviewing beneficiaries is critical following divorce. Changes may need to be made to beneficiary designations associated with 401Ks, pensions and other types of estate-planning documents to ensure that an ex-spouse or his or her family members are not named beneficiaries. If these designations are not updated, these assets may end up in unintended hands.
Another important consideration during divorce is the tax implications of any settlement reached. Applicable tax rules concern property disposition, alimony, dependent children and filing status. Understanding the tax implications may have an influence on the final decisions made regarding property settlement as well as child custody during the divorce negotiation process.
In many cases of divorce in the state of Massachusetts and elsewhere, one partner is savvier with finances than the other spouse. This partner often ends up negotiating from a stronger position, while the more vulnerable partner ends up settling for property division that may not be personally favorable long term. This is why seeking the help of an accountant or financial advisor as well as an attorney is paramount. Without their help, you might overlook income sources, liens and loans that may be relevant to you, and you may even lose large amounts of money in funds or investments to which you are entitled.
Source: fayobserver.com, “Divorce & Investments”, Tracy Sorzano, Feb. 23, 2017