According to Vivian Mason, family financial specialist from University of Missouri Extension, little planning and knowledge can help the divorcing couples in a big way. Some of the facts, which the divorcing couples do not know are have been advocated by Mason.
According to him, most individuals continue to enjoy health insurance cover for 18 months or more even after losing coverage of qualifying group. In case of death or divorce, the family members are liable for coverage of 36 months. The divorcing parents have to decide who will bear the premium cost. Generally, it has to be the employed parent. Such little information can help the family of the divorced couple gain more benefits.
Mistakes Divorcing Couples Usually Make
Divorcing couples are usually so involved in the legal proceedings and their emotional turmoil that they fail to take notice some of the practical aspects and legal things. One of the most important things that should never be overlooked is reviewing and revising the legal papers and documents including beneficiary designations, will, and advance directives. Such actions are highly necessary and should be taken immediately after the divorce comes into force to avoid any future disputes.
Retirement benefits are the most overlooked advantages. Both the spouses should provide the information during the divorce even though neither of them has reached age of retirement. Other benefits such as government and military benefits should also be taken into consideration. Although when you divorce young, these do not seem critical, but such things greatly affect your financial well-being when you become old.
Couples must ensure that they have cleared all the debts according to agreement before divorcing. The creditors have to be paid irrespective of whether the couple is together or separated. Even the decision of settling debt or carrying on paying installment for clearing particular credits after divorce should be settled before the divorce to avoid further hassles. If the debt has to be cleared through joint account then, both the spouses hold responsibility in its clearance. The couple can decide to divide the asset if they are paying the credit in division. However, such steps are necessary for protecting credit history.
Spouses asking for alimony should be aware that alimony is a taxable income and is deductible from the payee’s income. On the other hand, the amount given for child support is not taxable.
Such small informational tit-bits can help the couple sail through the after-divorce life in a better way sans any legal hassles.