10 Things Often Overlooked in Divorce Agreements 

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things often overlooked in divorce agreements

The financial and tax implications of divorce are often overlooked. Most couples focus solely on dividing assets and determining spousal and child support payments. However, it is essential to evaluate settlement proposals from a long-term financial perspective.

We’ll Discuss the following topics in this blog:

1- Health Insurance Coverage

When you get divorced in North Carolina, it’s easy to forget about health insurance. But it’s really important. After your divorce is final, you might not be able to stay on your ex-spouse’s health insurance plan anymore. That can be a big problem if you were relying on it and didn’t plan for your insurance.

In North Carolina, some plans or services, like GoodRx, X might let you keep your benefits for a short time after the divorce. But it might cost more, and it won’t last forever. It’s better to talk about this during the divorce talks, not after it’s all done. You might need to find a new insurance plan or see if there are state programs that can help.

If you don’t think about health insurance, you could end up without coverage when needed. So, talk to your lawyer to understand what your options are for health insurance while you’re getting divorced.

2- Parenting Time During Holidays 

When parents in North Carolina split up, they usually think about who will have the kids on normal days. But they might forget about holidays, birthdays, and other important times. This can cause problems later because both parents might expect to have the kids on special days like Christmas or their birthday.

To avoid confusion, it’s smart to make a plan for holidays in your custody agreement. This plan should say who gets the kids on which holidays, and when they’ll be picked up and dropped off. It’s also good to decide who gets the kids on their birthday and other big family events.

Planning like this can stop arguments later on and help both parents get along better. Talk to your lawyer about including these details in your custody agreement so everyone knows what to expect on special days.

3- Tax Implications of Asset Division.

When you get divorced in North Carolina, it’s important to think about taxes when you’re dividing your stuff. This means things like houses, the money you’ve invested, and even money one spouse pays to the other.

Sometimes people only think about how much something is worth right now, but they forget about taxes they might have to pay later. For example, if you keep the family home but sell it later, you might have to pay extra taxes on the money you make from selling it. Also, if you take money out of retirement accounts early to pay for your divorce, you might have to pay extra fees and taxes.

Another thing to consider is alimony. This is money that one spouse pays to the other after a divorce. The rules about taxes and alimony have changed, so it’s important to understand how it might affect you.

It’s a good idea to talk to a lawyer about how your divorce agreement might affect your taxes. Understanding this can help you avoid paying more taxes than you expected in the future.

4- Child- Related Decisions

When you’re sorting out your divorce, it’s super important to think about your kids. You need to make a really clear plan for:

  • Who will have the kids on different days and holidays?
  • How you’ll drop off and pick up the kids
  • What happens if plans change or if you want to go on vacation?

You also need to decide on things like child support. This means figuring out who pays how much and when. You should also talk about who gets to claim the kids on their taxes.

And there are other things you might not think about at first, like who gets to go to parent-teacher meetings or who has to say okay for the kid to get a driver’s license. Sorting all this out now will help you avoid problems later on.

5- Updating Account Beneficiaries

When you get divorced, it’s really important to update who gets your money if something happens to you. This includes things like life insurance, your 401(k), or pension.

If you had your ex-spouse listed as the person who gets this money when you die, that doesn’t automatically change after your divorce. So, even if you don’t want your ex to get the money anymore, they still might if you pass away.

You need to make sure to update who gets your money on all your accounts and insurance policies. You can choose other people like your kids, siblings, parents, or a trust. This way, your money goes to the right people after you’re gone. It’s a small thing, but it’s really important to do.

6- The Effect of Inflation

When you’re making decisions about money and expenses in your divorce agreement, you need to think about how prices might go up over time. For example, if one of you agrees to pay for your child’s college, you should know that college costs can get twice as expensive in less than 15 years because of how prices go up.

7- Opening a Separate Bank Account

If you’re thinking about getting a divorce, it’s a good idea to start putting money aside in a separate account that only you can use. This money can help you pay for things like legal fees and bills.

When you have a joint account with your spouse, either of you can take out all the money at any time. If your spouse gets upset and you’re served with divorce papers, they might take out all the money from the account to get back at you.

Before you move any money from a joint account to your own, it’s smart to talk to a lawyer because the rules about this can be different depending on where you live. But if you don’t have time to talk to a lawyer, you can move up to half of the money from the joint account and make sure to keep track of how much was in the account before and after you moved the money.

8- Changing Passwords

Many times, husbands and wives share passwords for lots of different things, like watching videos, social media, bank accounts, and more. But when you’re getting divorced, it’s smart to change your passwords to keep your stuff private.

9- Division Based On Length Of Marriage

In Minnesota, when couples get divorced, they usually split their stuff fairly. This often means dividing things equally, but sometimes it’s not exactly 50/50. The law allows for some flexibility depending on different factors. One of these factors is how long you were married.

If you were only married for a short time before you split up, you might not have contributed much to things like your house or retirement savings. In that case, it might make sense for you to get less stuff in the divorce settlement. But if you were married for a long time, it’s more common to split things evenly, even if one person made more money.

It’s important to think about how long you were married when you were working out your divorce agreement. Make sure your lawyer takes this into account so you get a fair deal based on what you put into the marriage.

10- New E-mail Address

If you’re going to receive mail that you don’t want your spouse to see, get a post office box. Also, create and start using a new email address. Let your lawyer, accountant, and anyone else who might send you mail know about your new email and P.O. box addresses.


Q1. What not to do when your wife wants a divorce?

A1. Try to keep calm. Avoid yelling, throwing things, cajoling, begging, pleading, or nagging your wife. Take time to discuss why your wife wants the divorce and what options might lead to reconciliation.

Q2. What are the hardest parts of divorce?

A2. The separation period is challenging, because of stressors such as loss, fear, anger, and anxiety about the future. Recognizing these emotions is vital to maintaining mental health during this difficult time.

Q3. What is the #1 cause of divorce in America?

A3. According to a recent national survey, lack of commitment is the most common reason given by divorced couples. Here are the reasons given and their percentages: 73% Lack of commitment 56% Argue too much (50%).

Q4. Who initiates divorce more?

A4. Women initiate divorce more often than men, regardless of whether it is accepted or not. Numerous studies have proved this. Nearly 70 percent of divorces are initiated by women.

Q5. How do you fight a narcissist in a divorce?

A5. You need to prioritize your goals and choose your battles carefully if you want to outsmart a narcissist during a divorce. must maintain clear communication boundaries while staying calm under pressure. You should also hire an experienced, high-conflict lawyer who understands how to handle these situations.