Other than child-related issues, finances, and financial decisions are often the most difficult, stressful, and complicated aspects of the divorce process. A qualified divorce attorney can help guide you through these negotiations, but even having a basic understanding of how your finances may be split up (or otherwise affected) can be some invaluable education as you head into this highly contentious proceeding. 

The Division of Marital Property

Mississippi is not a state that observes “community property,” meaning that property accrued during a marriage is not split 50/50. This can create more contention and battle during negotiations as each party fights for what they believe is theirs. One of the more likely scenarios is something akin to bartering where one party takes one item and the other takes something else in order to create a compromise. The financial considerations here go without saying: giving up or acquiring high-value assets can change your personal financial picture very quickly.

Dividing Marital and Premarital Debts

The best thing you can do ahead of a divorce is to try to clear as many personal and co-owned debts as possible. Having as little debt as possible entering the divorce will make it less likely that one party or the other is saddled with unexpected obligations. In most cases, both parties will agree to handle outstanding debts together, but having less to begin with makes the process that much smoother. 

Tax Considerations in a Divorce

Depending on the value of the assets involved, it may be wise to consult a certified public accountant (CPA) to help determine what your current and future liability could be. Things to consider include: who can claim a child as a dependent and for how long? How can child support be tax-deductible? Who can claim “Head of Household” status?

Above all, it’s crucial to consult an experienced divorce attorney to help you through the process. The team at The Law Offices of Rusty Williard understands the delicate and contentious nature of divorces and is here to advise and help you through the tough decisions that may await. Call us today at (601) 824-9797 to schedule a free consultation.