When a marriage ends, it is important to take time to rebuild and heal one's self. Studies show that rebuilding financially is just as important after a divorce considering that many have to start over building retirement nest eggs. Residents of Wyoming and other states who are divorced run a high risk of not having enough money to see them through their retirement years.
The end of marriage comes with many changes and financial surprises. A recent study showed that women in the middle of a divorce or those who are contemplating one were hit with financial challenges that they were not prepared for. Women in Wyoming and other states admitted that they had little understanding about household finances, debts and investments.
Experts say rebuilding credit after a divorce is possible, but it takes the same hard work and solid spending habits that secured that high credit score in the first place. They recommend closing joint accounts if possible and requesting credit reports from all leading credit bureaus. Residents of Wyoming often find that divorce is just as tough on credit scores as it is on the people involved.
Some compare the end of a marriage to be as destructive as the Great Recession on retirement accounts. However, some retirement experts say there may be retirement savings during a divorce. In Wyoming and other states, a Qualified Domestic Relations Order may allow a spouse to receive money from a 401(k) account without penalties for early withdrawal. These funds are subject to regular income tax, and experts recommend saving the payout for retirement.
Many experts believe a marriage can still be seen as a success even when it ends in a breakup. They recommend embracing the experience and the circumstances surrounding it and using it as an opportunity to develop and grow. Couples in Wyoming are discovering that a divorce does not constitute failure but staying in a relationship that is emotionally and mentally draining is.
Every person's situation is unique when it comes to the reasons for ending his or her marriage, and each person's experience is different. However, there are a handful of mistakes made during divorce negotiations that are common occurrences. Couples who are considering divorce in Wyoming should have realistic goals and a strong understanding of their current monetary conditions to avoid future financial blunders.
For couples ending their marriage, managing joint finances is far from simple. Aside from the emotional turmoil divorce can cause, it can also cause financial turbulence. Experts suggest having a game plan and consulting with a professional along the way to ensure the best financial outcome during these difficult times. For those in Wyoming, working with a divorce lawyer and a financial expert can help ensure the best outcome with regards to joint debt and finances.
Years after the divorce was over and the papers had been signed, a doctor found himself on the wrong side of the Internal Revenue Service. He ended up in Tax Court for failure to pay taxes on $140,000 in IRA distributions he paid to his wife several years earlier in 2014. Residents who divorce in Wyoming and other states can avoid tax burdens when transferring from an IRA with the help of their legal advisor.
When couples decide to end their marriage, it usually means making decisions about who gets the house, separating bank accounts and child custody arrangements. Some also have to decide what to do with the family pet. A growing trend to pass laws that would allow pets to be treated like children during a divorce. In Wyoming and most other states, while battles may rage over who gets to keep the family dog, pet custody is not formally recognized.
Children can play a major role as dependents when filing taxes. Claiming children on income taxes is normally cut and dry, but sometimes, another person will claim those same dependents. This problem most commonly surfaces after a divorce when both parties want to claim the children for tax purposes. In Wyoming and other states, taxes can be complex, and it may be in one's best interest to contact a qualified tax professional.