Divorce can be an emotional experience for those ending their marriages in Massachusetts and throughout the country. In many cases, managing emotions is one of the biggest tasks a person will undertake during the divorce process. However, it is also important to focus on the financial issues that a divorce can cause. In addition to an attorney, it may be worthwhile to hire a financial adviser who can help an individual assess the assets that they will need as a single person.
While a divorce financial adviser is ideal for anyone ending a marriage, professional help can be especially valuable to older people. This is because they typically have more assets to divide, and the assets that they have often need to be divided correctly to avoid potential tax consequences. For instance, a 401(k) or 403(b) will likely need to be split using a qualified domestic relations order, or QDRO.
Those who are getting divorced and seeking alimony should be aware of how it is treated for tax purposes. The person making the payments does not get to use them as a tax write-off while the person receiving the payments does not get to claim them as income. This could result in the paying spouse taking action to minimize how much he or she has to pay each month.
A person who is seeking a divorce may want to do so with the help of a family law attorney. An attorney may be able to review a prenuptial agreement, draft a QDRO or take other steps to help a person obtain a favorable outcome in his or her case. Attorneys might also assist individuals in court if a divorce case can't be resolved through mediation or private settlement talks alone.