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Q. I am thinking about getting divorced
but I don’t really know where to start. How
can my accountant help? Our finances are
together and I’m also worried about joint
credit issues. Can you help?
A. In today’s society the odds of two people
remaining together for a lifetime are getting
smaller and smaller. Over 50% of all
marriages now end in divorce.
The first step is to take an active roll in family finances
and get involved. Taking no action can result in lost
opportunities.
The next thing you should do is protect your credit. In
today’s turbulent times your credit is a very valuable
asset. Go to the official “annual credit report” web site. It
allows consumers to obtain one free copy of their credit
report, from each credit bureau, once every 12 months.
It is essential to protect your personal credit rating and
protect your future ability to secure credit. The easiest
way to verify your report is accurate is by going online
to each of these web sites: www.Equifax.com, www.
TransUnion.com, and www.Experian.com.
5 Common mistakes people often make when
facing a divorce:
1) Believing your spouse will be fair and cooperative.
2) Having totally unrealistic expectations or demands of
what you will gain from divorce or being a hindrance to
your case.
3) Allowing emotions rather than logic to rule your
decision making.
4) Expecting the legal system to be fair and see your
point of view.
5) Not asking appropriate questions, withholding
information from your lawyer, and not checking facts or
figures.
A Certified Public Accountant can help you establish
a workable budget and prepare requested financial
affidavits If needed they
can also testify as an
expert witness during court
proceedings as to your
financial needs, valuation of
assets and tax consequences
of alimony and equitable
property distributions.
Be completely honest with
both your CPA and attorney.
They are the only two
professionals that have an
obligation to their clients
to remain confidential. Be
extra cautious in disclosing
financial matters to anyone
who is not a licensed
Attorney or CPA.
Understand from the start that the process by nature is
stressful. Most family law courts require volumes of
documentation to be completed by both parties. Be aware
that divorce can be complicated, time consuming and
unfriendly.
When you have made the decision to proceed with a
divorce and you have sought the guidance from spiritual,
religious, and financial advisors remember to always act
as adults and when children are involved always act in
their best interest.
Ask Tax
Timothy P. Deegan CPA |
