When Kentucky residents get a divorce, they may have to divide martial assets with their former spouses. However, it is important to know that not all assets are equal. For instance, it may seem ideal to keep a family home, but the costs of maintaining it in addition to making a mortgage payment may not be worth it. These costs may not be affordable when they are paid with one income instead of two.
Keeping a marital home may be even less of a good idea if it means eschewing funds in a bank or retirement account. Regardless of what type of assets a person wants to take in a divorce, it may be a good idea to think of the tax implications of taking them. If a person has a choice between a retirement account and a bank account, it may be better to take the bank account because withdrawals aren’t taxed.
If a person is going to take money from a retirement account in a divorce, they must not forget the court order. Otherwise, a recipient could pay a 10 percent early withdrawal penalty. Those who are receiving child support may wish to buy insurance on the person making those payments. This ensures that a parents still has the financial means to provide for themselves and their children if a former spouse passes away.
Anyone who is thinking about getting a divorce may be wise to talk with a family law attorney. It may make it easier to learn more about property division or how child support could be calculated. An attorney may also review a prenuptial agreement if one existed prior to the start of the marriage. If it is valid, the prenup might spell out who gets what after the marriage ends.