There are a many issues that one should understand and consider before agreeing to a divorce settlement in Tulsa. Here are some of the most important issues you should consider when going through a divorce in Tulsa, Oklahoma.
What You Should Consider Before You Begin Negotiating Your Divorce Settlement in Tulsa
Maintaining financial stability is often a challenge after separation or divorce. Oklahoma divides marital assets on the basis of equitable division, meaning that marital assets will be divided equitably according to each spouse’s contribution to the total amount of marital property. This could mean a significant loss in the quality of life for the spouse who is not the main breadwinner in the family. So, it’s important that you evaluate your needs in light of the following issues before signing any divorce documents.
College Tuition
Your divorce settlement in Tulsa should address each parent’s future contributions to your children’s educational expenses. As a rule, you should stay away from using your retirement funds to pay for your children’s educational expenses, as these funds can be very difficult if not impossible to replace before you need them.
Health Insurance Coverage
If one parent has access to reasonably priced health care, that parent should keep the children on their plan, under which a child is typically covered until they reach the age of 18.
It should also be noted that if your spouse’s employer employs more than 20 people, the employer must allow the spouses of his employees to be covered under the same policy with the same insurer for at least three years following the divorce.
Nevertheless, if you anticipate any issues with being able to afford health insurance for you and your children, the cost of health insurance should be factored into child support.
The Costs of Keeping The House
If you will have custody of the children following your divorce, you may very well need to keep the house. Besides that, you may want to keep the house because it is a very valuable asset to maintain. On the other hand, keeping the home can be very expensive in terms of mortgage payments, taxes, utilities and maintenance.
So, you need to assess whether or not you will be able to afford to keep the house after you are divorced. You should weigh the costs and your ability to acquire a new place to live against the cost of keeping the house, before you begin negotiation to retain the home.
Taxes
Your divorce settlement in Tulsa can significantly increase your tax burden if you are not careful. Specifically, capital gains and alimony from your divorce settlement can significantly impact the amount of taxes you are liable to pay.
Capital Gains Taxes – You should analyze capital gains taxes when your marital property is being divided. You want to make sure that whatever property you receive in your divorce settlement in Tulsa does not come with a huge tax liability.
If your home is to be sold at a significant gain, you may want to consider selling the house before you file for divorce to take advantage of the full $500,000 capital gains tax exemption that the federal government provides for married couples.
Income Taxes – Alimony payments and a change in your filing status typically have the biggest impact on your income taxes after a divorce. As a general rule, any alimony that you receive is taxable as ordinary income and any alimony that you pay can be claimed as an income tax deduction.
As for your filing status, you can save a significant amount in taxes if you are still married after December 31st of the current tax year and you and your spouse can agree on filing a joint tax return for that year.
If you will be divorced after December 31st of the current tax year, you can reduce your taxes by filing as head of household rather than single. In either case, however, you should first consult with a tax consultant beforehand.
Free Consultation: Tulsa Divorce Attorney
For a free consultation to help you get started on your divorce settlement in Tulsa, call Divorce of Tulsa Law Office today. For a free confidential consultation, call now: (918) 924-5526.
