Cindy Allen & Associates PLLC

Phone: 405-310-8673

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Financial planning after an Oklahoma divorce

After a divorce, an individual's financial situation may change dramatically. A former spouse may need to make a mortgage or rent payment as well as file their own tax return for the first time. However, these financial changes are generally easier to handle when they are accounted for in advance of the divorce.

Prior to the final settlement is the best time to start looking for a job. Those who have been out of the workforce may need to budget additional money for a college education or other training prior to finding a full-time job. It is also a good time to look for an affordable place to live. While some people want to remain in the family home for the sake of the children, this may not be the best idea from a financial standpoint.

Those who may be receiving alimony should consider the tax implications of such payments. Although they may help an individual until he or she is financially stable, they are considered taxable income. Therefore, a $10,000 monthly payment will not be that amount after federal income taxes. It is also important to plan for a time when alimony payments may end or be reduced due to a reduction in the payer's income or other circumstances.

Those who are going through the end of a marriage may wish to talk to an attorney. While a couple may have a prenuptial agreement in place, this is not always the case. Legal counsel may be able to properly value marital property such as a rare art collection or a business that one spouse may own. In some cases, it may be possible to resolve a case through the negotiation of a settlement agreement that can obtain court approval.

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