On behalf of Stange Law Firm, PC posted in divorce on Thursday, October 27, 2016.
Missouri couples who are ending their marriages have to contend with a number of different financial matters. Understanding how their divorces may be impacted by taxes, property division, debt division and possible child and spousal support may help them to be better prepared.
In Missouri, divorce courts follow the principle of equitable distribution. This means that a court will divide the marital property in the manner that the judge believes is fair rather than halving it between the divorcing spouses. The goal is for both parties to emerge from the divorce fairly.
Debts are also divided in divorces. People will have to determine which spouse is responsible for which bills. They may work to reach agreements regarding the responsibility for paying debts, but they should remember debt that remains in both of their names is both of their responsibilities after the divorce. Different aspects of divorce may have different tax implications as well.If people take out retirement benefits they receive from their spouses before reaching retirement age, they may have to pay IRS penalties for doing so. Spousal and child support may also be an issue in some divorce cases. People should plan their budgets according to what they might be ordered to pay or to receive.
It is common for emotions to run high while people are going through divorces. If they are able to take a step back and view the situation logically, they might be better able to negotiate agreements with the assistance of their respective attorneys that may be more workable for them. They also might be more satisfied with the results than if the court had made the decision.