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Financial decisions an important part of Arizona divorce

| Apr 8, 2020 | Divorce |

Finances are often a primary decision in each stage of the marital relationship. This can certainly be true when a Arizona couple decides that it is time to end the marital relationship. Financial aspects and property division are often an important part of the divorce process.

During negotiations, it can be tempting for one or both individuals to insist upon retaining the family home. The premise behind such action may be that the home provides a sense of stability and normalcy for the individual and perhaps any children who may still live in the home. However, the decision to keep the home may not be financially sound.

Prior to deciding that remaining in the home is the appropriate decision, the individual will want to establish a realistic budget. This budget should take into account what income the individual will receive on a regular basis along with expenses that the individual will be responsible for paying. It may also be a good idea to plan for unforeseen expenses of income loss. This will assist the individual is determining if keeping the home is a financially prudent decision.

Tax implications are also an important part of negotiating an Arizona divorce. If the couple decides to sell the home, each individual may be responsible for a portion of capital gains tax, if applicable. Additionally, other financial decisions such as the distribution of retirement accounts may lead to tax obligations for one or both individuals. Experienced legal counsel can assist the individual in determining the impact each decision will have.