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Splitting assets, debts and other divorce financial issues

People in North Carolina who are getting a divorce need to take a number of financial issues into account. In some cases, property division may be more complex than it appears on the surface. For example, some assets may appear as though they have equal value, but one account may be taxed on withdrawal, lowering its actual value, while the other is not.

Many people struggle with what to do about the home because it has an emotional aspect. However, it is still necessary to deal with practicalities such as who will pay the bills for the house until a sale is final if the couple decides to sell it. If one person keeps the house, the divorce agreement does not mean that the person will no longer be considered responsible for the mortgage. The same is true for credit card debts. Creditors will still pursue the person in whose name the debt is regardless of what the divorce agreement says. All of this may need to be addressed.

Child support and spousal support are separate from one another, but a person may be required to pay both to the other spouse. Until the end of 2018, alimony is tax-deductible for the payer and tax-payable for the recipient, but that will change in 2019. Couples may prefer to negotiate these payments instead of going to court.

People who are considering divorce may be worried about how they will support themselves if they have not worked outside the home. If one spouse has earned significantly more than the other, that spouse might be worried about how much child and spousal support will cost. Sometimes, spousal support is only paid on a temporary basis. In both cases, discussing the potential financial ramifications with an attorney may help a person plan for divorce negotiations or for litigation if it is necessary.

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