Concerns in a Divorce.

When a family is going through a divorce it can be one of the toughest times in a person’s life. Concerns range from child support, alimony, and distribution of assets and liabilities. Many people find themselves so caught up in the emotion of their case that they can overlook very important considerations. That being said, let’s look at a specific example of oversight that could potentially cost a person thousands of dollars.

Say husband and wife are getting a divorce, and at issue is the support due wife after the dissolution. Wife, in her settlement agreement, gets husband to agree to give her a portion of his 401(k), let’s say $50,000, and in turn waives her right to any alimony that she could potentially qualify for. Unfortunately, wife’s attorney forgets to account for taxes inherent in 401(k)’s, and instead of negotiating the taxes into the agreement, the wife ends up paying nearly 30% in tax on the settlement, $15,000. With careful negotiation the husband might have agreed to account for those taxes, thus giving the wife the full value of her settlement.

Issues like the one seen above can be avoided by carefully choosing a Yulee Divorce Attorney who will represent you. An experienced Yulee Divorce Attorney is sure to take the important tax implications into consideration before presenting a proposed final agreement. Contact a Yulee Divorce Attorney to discuss the facts surrounding your case today.

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