Money can be a major worry and point of conflict in a marriage in Virginia. This same problem can continue to haunt the couple during a divorce proceeding involving asset andproperty division. There are multiple ways to effectively manage one’s money while trying to address issues such as the division of assets when dissolving a marriage in Virginia.
An important step when getting a divorce is to take a look at all of one’s assets and liabilities. Understanding what both spouses own separately and together, as well as what they owe, will help a person to be informed when it comes to fighting for certain assets. It’s also essential to think big-picture before diving into a settlement that a spouse proposes.
Some financial decisions made during a divorce proceeding can end up impacting one’s cash flow, education and even retirement in the short or long term. In addition, it’s wise to remember to revise beneficiary designations on assets such as insurance policies and retirement plans. This helps to prevent an ex-spouse from getting one's valuable assets in the future.
Some property division and asset distribution settlements also have tax implications that affect one’s personal coffers down the road. For instance, a person who ends up receiving alimony or child support can expect to have to pay taxes on this income. However, if a couple transfers assets between themselves within a year following their divorce date, no losses or gains in income are recognized. Knowing applicable laws can increase one’s chances of accomplishing an outcome that has the best financial consequences possible for oneself in Virginia.
Source: wallstcheatsheet.com, "7 Ways to Manage Your Finances Through a Divorce", Kirsten Klahn, June 8, 2014