FINANCIAL ISSUES OF DIVORCE

  Posted on November 26, 2017

Financial issues of divorce need to be clearly understood by both spouses to ensure a fair settlement.  Think about this... divorce is 45% emotional, 45% financial and 10% legal... Find this suprising?  Perhaps you are new to the world of divorce?  Granted, every case is different but, divorce attorneys I work with agree with these percentages. 

Attorneys tell me the assets and debts are typically divided 50/50.  This is basic math.  However, it is critcal to understand which 50% of the estate will give you the least amount of taxes owed and highest net worth projection in the future.  These are financial questions / math issues that should be addressed by a financial professional.

Child support is calculated by a spreadsheet created by the state of TN... This spreadsheet is online and is available for those divorcing spouses at http://www.tennessee.gov/humanservices/article/child-support-guidelines-downloads.  Yes, there are parenting and child support issues an attorney should address.  But, calculating the child support payment is not mysterious.  It is math.

Alimony is typically the most difficult part of a divorce.  It is based on many factors but, attorneys focus on determining how much one spouse needs (typically the wife) and the other can afford to pay (typically the husband).  A complete list of monthly living expenses proving the need for and ability to pay alimony is a math exercise.         

If you are considering divorce, I encourage you to first seek a therapist to address your emotional issues and help you consider your options.  Next, seek a financial professional to address the finances/taxes/expenses.  After you are calm, and understand the finances, seek an attorney to give you legal advice.  Your attorney will appreciate that you are well prepared for your meetings.  Being prepared will also decrease your stress and give you the best value for your legal fees.