30 September ,2014 By Admin Category:Divorce

Most people would agree that a divorce is always unpleasant. Even if the proceedings begin amicably, disputes or complications frequently arise that can drag out the process, causing you and your family to become hopelessly immersed in the legal system. You need an experience and aggressive divorce lawyer who will assist you to fully understand how the divorce may affect your life.

Are Both Parties Liable for Debt?

Most couples use joint credit cards and sign for loans together. The contracts associated with such accounts obligate both parties for the debt, regardless of who was responsible for the majority of the purchases. Creditors are not concerned with the fact that you have filed for divorce, their only interest is in recovering the debt, and therefore they will pursue both individuals for payment.

Who Pays Student Loans?

Many couples in the process of divorcing may also be unsure about who is responsible for student loans. Numerous facts must be considered regarding such loans, including whether or not a person enjoyed financial benefits from the education received by his or her spouse. Therefore, you should regard any student loans as a potential divorce, since the terms of such arrangements can run as long as 20 years. Typically, if the community received benefit from the education of one spouse then the community is responsible for the student loans payments.

What are the Tax Implications?

A divorce can have considerable impact on your taxes as well. For instance, it is essential to evaluate capital gains tax when real estate is being divided. Capital gains laws are also important regarding other types of investments that appreciate in value, such as mutual funds. This aspect is frequently overlooked by those who are not being represented by an experienced divorce lawyer.

Income taxes are also affected by alimony payments (also known as spousal support). Alimony is taxed as basic income. Therefore, a $50,000 payment received is typically worth $35,000 after taxes–assuming a 30 percent tax bracket. This percentage will obviously vary greatly from one person to another.

The Best Timing for Bankruptcy

Filing for bankruptcy and divorce simultaneously is possible, but may not be advisable. This is because all your assets will be affected before the case is finalized. You must also understand that bankruptcy proceedings will take precedence over your divorce as bankruptcy cases are based on Federal Law. For this reason, if the divorce is not amicable, it is very unwise to try to handle the case without the help of a qualified bankruptcy attorney.

Many people fall into the trap of assuming that they can navigate through the legal system with basic knowledge on a divorce or obtain advice from family and friends that will turn them into legal experts overnight. However, without the appropriate advice from a divorce or bankruptcy attorney, the potential for a negative outcome is very likely. Regardless of the individual circumstances surrounding your divorce, it is always wise to hire a qualified divorce lawyer to handle your case.

If you are going through a divorce or expect to go through a divorce or bankruptcy process, contact Mr. Karapetian to discuss these legal issues in depth and to receive guidance from an aggressive and experience attorney.