When spouses in Virginia decide to end their marriage, there are often a variety of complicated financial choices to make. For those who are considering divorce, it is vitally important to prepare for the far-reaching financial implications and consequences of this life event. Here are some important financial areas to think about before divorce negotiations begin.
Real estate
Real estate encompasses rental properties, vacation properties, business properties and, most importantly, the family home. The home may be an area of conflict in divorce settlements since there are often emotional ties. Typically, the family home can be sold and the money is divided between both spouses. Another option is for one spouse to buy out the other’s share in the home.
Financial assets
These usually include stocks, investments, bank accounts, life insurance and retirement plans. If one spouse is unemployed or not working, these kinds of assets may be more important since he or she could need these to cover living expenses. Keep in mind that there could be tax implications associated with these types of financial assets.
Debt
Debt can also be negotiated during divorce proceedings. Credit card debt, consumer debt and student loans are examples of debt that is often divided as part of a settlement. However, reorganizing debt from joint to separate may require some work and could result in many credit inquiries. As a result, credit scores often suffer amid divorce.
Where to get help
The dissolution of a marriage is often one of the most challenging experiences a person can go through. Those in Virginia who are going through divorce could get help by speaking with a seasoned legal professional. A knowledgeable divorce attorney can protect personal rights and help individuals receive the best possible outcome relative to their situation.