How to Plan Financially for Divorce

Are you about to begin the divorce process in Grand Rapids? If so, then you surely have a lot of things on your plate. There are many things you have to contemplate and so many questions you will need to answer. Of course, one of the biggest issues you will deal with is your new financial situation. Not only do you need to worry about things like property division and spousal support, but you could also have to take care of child support issues as well. On top of all that, you have to determine how you will support yourself as a single person going forward.

All of these issues are important and they have to be dealt with. However, by taking the time to plan ahead and looking at your money situation from a wide spectrum you can handle these things effectively and better prepare yourself for the future as a single person. On the other hand, by failing to consider all the financial aspects of your divorce, you could put yourself into a difficult situation for years to come. The following are some of the money matters that you can’t really afford to overlook in divorce.

• Your children – while receiving monthly child support payments doesn’t count against you for taxes, you will have to decide who gets to claim the children on your separate returns. There are also other long-term aspects of child support to keep in mind. For example, who is going to help pay for college tuition when your children are grown? It may be helpful to set up a college savings plan now.

• Retirement funds – if one or both of you has a retirement plan, you will have to determine how those assets will be divided. You might also want to change the beneficiary of your retirement plan so the money goes to someone other than your ex, should you die unexpectedly.

• Taxes – remember that spousal support (alimony) is considered taxable income and can also be used as a deduction for the payer. In addition, the spouse who receives this money should make quarterly estimated tax payments.

• Estate plan – estate plans are important at any phase of life, but making sure you update your plan or create a completely new one right after divorce is very important. In order to ensure your property and assets are distributed as you wish, you need to make the necessary changes in your plan, including your will, any trusts you have, and power of attorney if needed.

• Life insurance – make sure your insurance plans are set up in a way that will benefit you the most. On the other hand don’t miss out on possible benefits to which you are entitled by overlooking these policies.

As you can see, these are many financial matters to keep in mind when you go through a divorce. At the Van Den Heuvel Law Office in Grand Rapids, we work with people going through divorce every day and we understand what you’re going through. We also understand how to help you best handle these kinds of matters. If you need help making important financial decisions regarding your divorce settlement, then you can rely on us. We make sure that you get all the information you need to help guide you in making the best decisions for your situation. Call us today at 616-698-0000.