Find out the basis in your home

If you receive the family home that has a low basis, you may be liable for capital gains taxes later. This would also apply to stock accounts and other real estate. Basis does not relate to the amount of the mortgage. It relates to the amount originally invested in the property adjusted by improvements, sales costs, etc.

Get real estate appraised

You may agree on the value of your home, but what if you receive the home and you agreed it was worth $360,000 but when you go to sell it, you can only get $250,000 for it? That means you may have left more than $55,000 on the settlement table! (One half of the difference of $110,000.)

Property settlement is a done deal

After the divorce is final, if you change your mind about how something was divided, or which property you got, it is too late to change it. The only exceptions would be if you found additional property that was not disclosed or if you feel fraud was involved.

Know the difference between separate and marital property

Separate property is everything you bring into the marrige and keep in your own name. It is also what you receive during the marriage as a gift or an inheritance.

Marital property is everything acquired during the marriage - no mattter whose name it is in. And in some states, but not all states, the increase in the value of separate property.

For instance, consider a $20,000 savings account brought into the marriage which earned $3,000 during the marriage and is now worth $23,000. The $20,000 would be set aside as separate property and the $3,000 would be included in the pot of marital assets to be divided.

Assume the wife adds $100 each month to her IRA which is in her name only. That is still considered to be a marital asset because it is "everything acquired during the marriage, no matter whose name it is in."

Consider cost of living increases for child support

We all know that children seem to get more expensive as they get older. They seem to have more expensive 'toys' such as computers, skis, orthodontics, etc. Many couples discuss including a cost of living increase each year for child support.

Child Support Guidelines

All states now have Child Support Guidelines. They are usually based on the incomes of both parents and the amount of time the children spend with each parent. As each state may vary widely in its calculations, consult with an expert in your state.

Child support is always modifiable

We discussed how alimony may or may not be modifiable. Well, child support is always modifiable. The courts will not allow us to take away the rights of the children.