A divorce is a significant form of loss. It is the loss of a relationship and the end of a stage of a person's life that, at one time, they may have thought would last forever. Massachusetts residents who have had to endure the difficult process of divorce or who have witnessed friends and family members go through it understand that as a marriage ends a whole host of questions and concerns may begin.
Questions may arise with regard to a parent's right to stay involved in their children's lives as their marriage comes to an end or regarding whether they will receive support from their spouse after their divorce has been finalized. Many questions come up concerning the division of a divorcing couple's assets and rather than investigating responsible solutions to their quandaries divorcees often make emotionally-based and sometimes poor choices over what assets they wish to retain.
One asset that can be emotionally fulfilling to retain but that may impose significant financial hardships on a person is the family home. It can be tempting to fight tooth and nail for ownership of one's home after a divorce but, as some fail to recognize, maintaining a home can be costly. Without the income of one's former spouse managing mortgage payments and costs associated with home upkeep can be burdensome.
Additionally, regarding ownership of a family home and the ownership of other liquid assets, divorcing parties can fail to understand how their tax responsibilities will be impacted by their property division decisions. It can be extremely beneficial to a person planning to divorce to not only discuss their property division wishes with their family law attorneys but to also to inquire into how those choices may positively or negatively affect their financial health in the wake of their divorces.
Source: cnbc.com, "When it comes to divorce, not all assets are equal," Sarah O'Brien, Sept. 22, 2017