Many Nevada residents hoping for a fresh start will greet the new year with resolutions to live a more a healthy lifestyle or eliminate a bad habit, and it is the opportunity to begin again that leads to January being the busiest month of the year for new divorce filings. The American Academy of Matrimonial Lawyers reports that divorce filings are frequently about one-third higher in January, but spouses thinking of taking this path may be wise to ponder some important issues first.
Divorce can have significant tax and financial consequences. In addition to losing the deductions that come along with marriage, divorced spouses may face capital gains tax liabilities if marital assets such as investment portfolios and art collections are liquidated and the proceeds divided. Losing job-related benefits provided by a spouse such as a retirement plan or health insurance coverage should also be considered.
While family law judges in most states are able to use their discretion when deciding how marital assets should be divided in a divorce, the community property laws of Nevada require that property is divided equally regardless of how long the couple has been married or the financial situations and future needs of the spouses involved. However, this can often be avoided if there is a valid prenuptial or post-nuptial agreement in place.
Family law attorneys may bring matters such as these up during an initial consultation, but they could also point out that the benefits of a fresh start may outweigh these considerations. An attorney can also often be of assistance to a client who is contemplating a divorce in negotiating a settlement agreement that addresses the applicable divorce legal issues.