People in Maryland may have seen some recent national news stories about the divorce rate in China, which skyrocketed in the first week of March. The reason may be surprising to some: the increase in divorces had nothing to do with people falling out of marital bliss but seems to have had everything to do with a new tax loophole to get around a new tax on real estate sales.
Most people in the United States get married to enjoy the stability and unity that comes with being married and having a family. However, that certainly isn’t to say that finances don’t play into the decision to marry, and if things go south in the marriage, the divorce. Divorcing couples have to worry about property division and spousal support, things that could seriously impact a person’s financial well-being if not considered carefully.
Marriage comes with tax benefits and benefits that married couples can share, such as pensions and social security. Of course, owning a home also comes with financial benefits, but when a couple divorces, all of these benefits can go away as well.
When it comes to dividing marital property in a divorce, people need to understand how their new financial situation will affect their lives in the coming years. People obviously will put sentimental value on certain things during the property division process. Letting sentimental value dictate the terms of the property division, though, can be devastating to a person’s finances in the long run.
Property division should be based on sound valuation of assets, and making sure the divorcing person is financially secure as they begin their new life apart from their spouse. An experienced divorce attorney can help people make sound decisions and get the full amount they are entitled to from property division in a divorce.
Source: Yahoo Finance, “Divorce Filings in China Surged Like Crazy This Week,” By Joe Weisenthal, March 10, 2013