Many Massachusetts couples likely maintain separate bank accounts with the assumption that in the event their marriage ends, each person can walk away with his or her own money. According to researchers, the percentage of married couples opting to keep their finances separate has more than doubled in recent years. However, experts warn that married people who assume that this practice will protect their assets in the event of divorce may encounter an unwelcome surprise if they actually find themselves in the position of dissolving their union.
Married people who have decided to go their separate ways often experience some distress during the ensuing legal process over the loss of control of many aspects of their life. Typically, people going through a divorce must negotiate living arrangements, child custody and visitation schedules, financial obligations and, in some cases, much more. However, divorcing Massachusetts couples can take specific action in some areas of their lives to increase the chances of a positive outcome, and one of these areas is credit and how it is affected during and following the divorce.
Any Massachusetts couple in the midst of legally ending their marriage would likely agree that all aspects of the process are unpleasant, at best. However, for many divorcing couples, spousal support (also called alimony) tends to be one of the more challenging steps in the divorce process. Therefore, to assist divorcing individuals in successfully negotiating this type of support, industry experts offer some tips.
From the beginning of the separation process to the final dissolution of a marriage, both parts of a couple, typically, will experience a great deal of stress. Most Massachusetts couples in this situation face many difficult decisions as well as a general upheaval of their accustomed lifestyle. Unfortunately, sometimes, while a person is going through the divorce process, he or she encounters additional challenges, such as a job loss. Other than the obvious fallout from employment loss, people finding themselves in this situation during divorce negotiations may worry about how the courts will handle the change in financial circumstances.
Probably any divorcing Massachusetts couple will attest to the fact that once the decision to split has been made, everyone involved begins a process that is often lengthy, stressful and fraught with challenges. During this difficult period, with all the issues that must be considered, people sometimes overlook important areas that will change with the divorce, such as insurance coverage. Divorcing individuals should be sure to review all insurance policies and prepare for any changes that will happen with the change in their marital status.
Couples who have decided to end their marriage face various important decisions in the upcoming months, depending on their life circumstances. However, for many people, child support and/or spousal support negotiations demand a significant portion of time during the divorce process. Laws regarding how courts determine each person's level of obligation vary from state to state, but divorcing Massachusetts individuals can benefit from knowing the following general guidelines.
For many, having to end a marriage brings their dreams crashing down. It is not unusual for one party to want a divorce more than the other, and as a result, it is also not uncommon for at least one person to feel some emotional turmoil. However, letting these emotions play an important part in decision-making during legal proceedings is not wise.
In the event of divorce, each party must make important decisions in various aspects of their lives: living arrangements, financial support, children, etc. Typically, if spousal support is to be determined, the divorcing couple will discuss it later in the proceedings, as the plan for division of property and other assets should be in place first. Massachusetts divorcing couples would be wise to know some points about spousal support, including how it is calculated and what can be done if the payor fails to follow through or either party's circumstances change.
Most Massachusetts couples will likely agree that trust is one of the most important components of a healthy relationship. When two people decide to divorce, no matter the reason, in most cases, either prior to or during the divorce process, trust is eroded to some degree. When trust is depleted or absent, one party in a divorce may attempt to hide assets from the other. A financial expert offers advice for uncovering such hidden assets, since doing so will increase the likelihood that both parties will be treated fairly in the divorce.
Many Massachusetts residents know about the changes to the tax treatment of alimony payments under the Tax Cuts and Jobs Act. As of Jan. 1, 2019, alimony payments are no longer considered tax deductible for the payer nor taxable for the recipient. However, the new law applies only to new agreements signed on or after the first of this year or older agreements that have been modified after Jan. 1, 2019. For all others, for tax purposes, it is important to know exactly what is considered alimony, otherwise known as spousal support.