The Centers for Disease Control and Prevention reported the divorce rate in Ohio in 2021 was 2.6 per 1,000 people. Divorce is a life-altering event, further complicated by a myriad of financial issues.
Couples facing divorce may find themselves entangled in financial complexities that demand careful consideration.
Financial infidelity
One of the less-discussed but pervasive issues in divorce is financial infidelity. It happens when one person in a partnership keeps money information hidden or does tricky things with money matters. This could involve not sharing debts, having secret bank accounts or hiding assets. Figuring out how much financial dishonesty has happened makes the divorce process more complicated. It often needs a careful look to ensure a fair division.
Complex financial situations
For couples with complicated finances, getting a divorce can be like solving a tricky puzzle. It is not just about the obvious value. It requires looking deeper to make sure everything is fair and to avoid arguments about valuations that are too high or too low.
When a couple owns a business together, figuring out what happens to the business needs careful discussions. The value of the business is super important in splitting it, selling it or continuing joint ownership. Business debts, ongoing responsibilities and how it affects the people working there make divorces with businesses even more complicated.
Having investment accounts with stocks and bonds adds another layer of complexity. It is not just about saying how much they are worth. Taxes and deciding when to sell these investments is often complex.
High wage earnings
When one or both spouses earn a high income, determining spousal support and child support can become contentious. The calculation of support payments often involves complex formulas that consider various factors, including the standard of living during the marriage, the needs of the supported party and the paying party’s ability to meet those needs while sustaining their own lifestyle.
Divorce, especially when entangled with financial complexities, requires a meticulous approach. Couples navigating divorce in such circumstances should prepare for meticulous financial scrutiny to achieve an equitable division of assets and obligations.