When it comes to a divorce, it is not solely up to a judge to make all the decisions. A crucial part of any divorce is working with an attorney to help develop an agreement between you and your spouse. This helps you keep some amount of control of the result.
Even still, you should remain vigilant about some critical
issues that are commonly overlooked when couples are in the negotiating phase
of an agreement. Avoiding these mistakes can save you money and prevent
unnecessary stress. A skilled divorce lawyer will know to address these issues,
but the better prepared you are before beginning any legal process will only
serve your emotional and financial interests in the future.
Overlooked Assets
Sometimes, one spouse may legitimately forget about assets
that are not immediately obvious to them and fail to disclose these assets in
the divorce process. Old retirement accounts, frequent flyer miles,
experimental investments such as purchases of cryptocurrency, as well as
intellectual property can easily be overlooked and left out of the final
agreement dividing these potentially valuable assets. But it may be that a
party-spouse takes deliberate steps to hide, omit or divert attention and
access to such assets. Discovery – the formal legal exercise of obtaining
records about assets and liabilities, among other things, from the other party
– is often necessary so that a thorough investigation of your property can be
conducted. Remember to provide your attorney with any information relating to
safety deposit boxes, vacation properties/timeshares, credit card rewards
points, and any intellectual or creative property you may have.
Debts
Assets (“positives”) are not the only thing being divided in
a divorce. Debts (“negatives”) must be accounted for as well. People commonly
overlook assets, but it is even easier to overlook outstanding debts because
people do not enjoy thinking about them or even admitting they have debt. If
you are contemplating a divorce, you should pull a current copy of your credit
report as well as any statements reflecting debts to which you have access so
that your attorney has a clear picture of the debts associated with your name
and strategize a plan on how to allocate these debts before the divorce is
finalized.
Taxes
No one is a fan of the I.R.S. and they are a common enemy
for both spouses during a divorce. The parties should each get ahead of this
issue by consulting with an accountant or financial planner (or both) of that
party’s individual choice to determine the best way to minimize their tax liability,
both pre- and post-divorce. It is also important to consider the after-tax
value of investments when dividing them. Finally, don’t forget to address the
allocation of tax refunds (or liabilities), child tax credits/dependency
exemptions, as well as carry-forward losses if such tax assets are applicable
to your marital estate and case.
Inflation
Inflation can also play a factor in the division of assets
in divorce. The value of certain financial assets, offset by certain expenses, should
take inflation into account, to the extent this element is quantifiable. For
example, one spouse agreeing to cover the cost of college for a child should be
aware that said costs are capable of doubling in less than 15 years due to
inflation.
There are many considerations and pitfalls you will want to
avoid during and after a divorce. Working with an experienced attorney will
ensure that commonly overlooked items are addressed so that you may begin your
post-divorce life in the best position possible.
Jenkins
& Kamin LLP cares about their clients and wants every stage of their
divorce to go as smoothly and favorably as possible.
Jenkins
& Kamin LLP is one of the most respected family law firms in Texas. The
firm is noted for its “team” approach by pairing skilled attorneys, paralegals
and other support staff to enhance each client’s experience in difficult life
transitions.
In
addition to the “team” approach, Jenkins & Kamin, LLP strives to
personalize case strategies for each individual client, including
identification of every particular legal issue and effective explanation of the
law with respect to those issues. The firm endeavors to achieve a
resolution that is appropriate for each client, while aggressively advocating
on their behalf when necessary. Having a dedicated and experienced team working
with you in any family law matter is of utmost importance to achieve the best
result possible.
Jenkins
& Kamin LLP represents clients in the following aspects of family law practice:
Marital Property Agreements, Divorce, Complex Property Issues, Child Custody
& Visitation, Child Support, Parentage, Modifications, Family Law Appeals
and Dispute Resolution Alternatives. To learn more about the firm, visit
www.jenkinskamin.com or contact one of our offices in the greater Houston area
