Other than child-related issues, finances and decisions revolving around money are often the most difficult, stressful, and complicated aspects of divorce. An experienced Jackson or Brandon 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) is invaluable as you head into this highly contentious proceeding.
The Division of Marital Property in Mississippi
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 exchanging items of value in order to reach an overall compromise. The financial considerations here go without saying that giving up or acquiring high-value assets can quickly change your personal financial picture.
Dividing Marital and Premarital Debts in Mississippi
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 (and perception of needing more resources to pay off unresolved debts). In most cases, both parties will agree to handle outstanding debts together, but having less to begin with makes the whole process much cleaner.
Tax Considerations in a Mississippi 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?
Underestimating Monthly Costs During Negotiations and Post-Divorce
Like any big changes in life, preparing for divorce requires budgeting and understanding the long-term impacts. How much money will you need to maintain your desired quality of life while negotiating the divorce and after? Will you be required to pay alimony? Will you be receiving alimony? These are only a few of the questions you’ll need to consider. Factor in future rises in the cost of living and potentially enlist the help of a financial expert to help map your post-divorce plans.
Above all, it’s crucial to consult a knowledgeable Mississippi 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.