Divorce Details That are Often Overlooked
During the strain of getting a divorce, it’s no surprise that many important details can slip through the cracks. While dividing assets and determining custody may seem like the main focus, there are several key aspects that are often overlooked, some with long-term consequences. But, with the guidance of an experienced mediator paying attention to these finer points, you can prevent costly mistakes down the road. Let’s look at pitfalls to avoid:
Retirement Accounts and Timing Division of those Accounts
One of the most common oversights involves retirement accounts. While many couples are aware these need to be divided, they often neglect the technical and legal steps required to do so properly. For example, if one spouse has a pension, a Domestic Relations Order (DRO) or similar legal order must be put in place to divide the account correctly. Waiting too long—say, 10 years after the divorce—to handle this can lead to confusion, legal complications, and even financial loss. It is important to address retirement accounts during the divorce process itself, not years later.
Tax Liabilities and Future Implications
Taxes are another area that tends to be ignored in the heat of a divorce.
- What are the implications of keeping one type of an asset as opposed to another?
- What about shared tax returns or potential IRS liabilities from prior years?
- Who will be responsible for capital gains taxes if a property is sold later?
These questions might not seem urgent when you are focused on separating, but unresolved tax issues can create serious problems. A mediator will help raise these questions and ensure that tax responsibilities are clearly outlined in the settlement agreement.
Parenting Time and Long-Term Custody Considerations
When co-parents are on relatively good terms during a divorce, they may assume everything will go smoothly with parenting arrangements. But even in amicable splits, there are details that should be discussed and formalized. For example: when is it appropriate for a new significant other to be introduced to the children? While it may not seem necessary to create rules around this if everyone is getting along, having clear agreements in place can prevent future conflict. These nuances can be worked into the parenting plan or at least talked through during Mediation.
Mediators Save You Time, Money and Stress
The emotional toll of divorce can make it easy to miss long-term considerations. Retirement accounts, tax implications, and parenting nuances are just a few of the details that mediators help bring to light. Taking the time to address these overlooked issues now can save you from major headaches later.
The Kim Mediation and Law Center is located at 3701 Wilshire Blvd in Los Angeles, CA. You may make an appointment by calling 213-351-1000 or visit www.kimmediationandlaw.com
Compassion for my clients is important to me, and that’s why I’ve remained a family law practitioner for 30 years — and still love what I do. I’m keenly aware of the emotional toll divorce can have on you and your family. As you navigate the rough waters of transition, my team and I will help you find your balance. We’re here to support you in making the best decisions for your future. I’ve seen the positive results again and again when couples embrace meditation or collaborative divorce. I’d be honored to share these practices with you and set your family on a healthy path.
