Weddings, as North Carolina residents know, are usually a cause for celebration. The furthest thing from the minds of the happy couple is the dissolution of their marriage. However, a study by LendingTree reveals that going into debt to pay for a wedding actually led to newlyweds fighting and thinking about divorce.
Many North Carolina millennial have shied away from co-mingling their funds, even after a couple decides to get married. It is estimated that approximately 28 percent of couples across the nation who get married never open a joint bank account and end up keeping their funds completely separate. While this may be due to the fact that it can be difficult to divide assets during a divorce, maintaining separate assets does not mean that they will not be distributed in the event of a divorce.
There are many factors that can threaten the health of a relationship. However, financial issues are often the source of breakups in North Carolina. While many spouses focus on fixing incompatible spending habits, people forget that long-standing debt can also have a negative effect.
Spousal support, also referred to as alimony, is one of the many issues divorcing couples in North Carolina may have to address, but it often is not until the proceedings are well underway. Generally, a plan has be to in place for how debts and assets are to be divided before determining how much spousal support has to be paid, or if it should be paid at all.
For some couples in North Carolina, the emotional impact of divorce can be so great that the process becomes contentious. However, there are steps people can take to defuse it and proceed civilly.
Some North Carolina couples reach a point where they want to consider ending a marriage that's no longer working for them. Taking this step isn't unheard of. After all, about half of all first marriages end in divorce. The stats are even more alarming for subsequent trips down the aisle. Barring instances of spousal abuse or violence, it's generally advised that couples consider the possible financial challenges that legally splitting may present.
Money problems are one of the leading causes of divorce in the United States, and debt is especially known to be a relationship terminator. Nearly 50 percent of all couples go into their marriages with debt already accumulated, creating an uphill battle. Partners often disagree about who is more responsible for their financial woes, and concerns about the problem lead to a lack of communication and increased fighting about money in general.
People in North Carolina may be wise to consider the effects their divorce could have on tax planning. This is especially true for people with significant assets, particularly when one spouse is the primary breadwinner. Spousal support taxation will be handled differently for people who finalize their divorces after Dec. 31, 2018, due to changes included in the Tax Cuts and Jobs Act passed in late 2017.
Many people getting a divorce in North Carolina are aware that the process can present some challenges during the transition to a life without a significant other. There's no getting around the fact that ending a marriage is often time-consuming and sometimes costly. However, some individuals remain unaware of the possible implications associated with certain financial mistakes that tend to be made during a divorce.
For people in North Carolina and across the United States, upcoming changes in tax law could make divorce even more financially complicated. In December 2017, the Tax Cuts and Jobs Act was signed into law by President Donald Trump. While other aspects of the tax reform garnered a great deal of media attention, less discussion focused on the law's effect on couples who decide to divorce.