3 Mistakes Commonly Made with Divorce Financials
Planning the financial impacts a divorce will have on a family is one of the most complex aspects of a divorce attorney’s job. It’s one thing to think you know what the impact will be, but it’s quite another to see the effects once the divorce is finalized. Firms that rely on hand-calculations are at a disadvantage from the start. Every line item, every calculation must be done by hand. That doesn’t sound so bad if you’re good with numbers, but it gets exponentially more complicated when expenses are forgotten or added at the last minute. Minor setbacks like this can have a dramatic impact not only on the timing of the divorce, but further down the line at tax time.
In fact, the three most common financial mistakes that are made during divorce negotiations are:
- Inaccurate Budgeting due to omitted or neglected expenses. This may cause payment issues in the future.
- Disregard for Tax Implications. Both parties will be liable for taxes after a divorce. Accuracy during the divorce settlement is vital to minimizing the taxes that are due.
- Improper Evaluation of Settlement Proposals. Assets, incomes, budgets, etc. all must be considered when determining alimony payments. Improper evaluation of these numbers will lead to an inaccurate picture of a post-divorce lifestyle.
Using computer software like Divorce Financials from Easy Soft eliminates these mistakes, makes it easy to make last-minute changes, and improves the accuracy of the data – without the need for an accountant.
Use Easy Soft’s Divorce Financials Software And Avoid These Common Mistakes
EasySoft’s Divorce Financials software eliminates the need to bring in an outside accountant to help analyze and evaluate the tax and financial ramifications of a divorce. The easy-to-follow prompts lead to understandable reports that you and your clients can evaluate together.
- Budgeting. If expenses have been neglected until the last minute, simply go back to the expense input form and make the necessary changes. The software will automatically update alimony payment options for you.
- Tax Implications. Divorce Financials is programmed with all 50 state tax rates, federal rates, and NYC rates. This allows you to create tax-optimized settlements that produce the highest amount of disposable income for both sides.
- Settlement Proposals. Divorce Financials gives you up to 5 different alimony payment scenarios so you can choose the one that best meets your clients’ budget needs. Child support, lifestyle analysis, and alimony buyout calculations provide even more detail and give a clearer picture of what the post-divorce lifestyle will look like.
Manage Divorce Financials In-House
EasySoft’s Divorce Financials planning software is like having your own accountant in-house. Divorcing couples are sensitive enough about their situation; they may not appreciate having an outsider brought in to examine their current and future financial life. You can avoid this possibility and manage the divorce process from start to finish, right down to the last alimony payment, with the right software. Divorce Financials will help you improve client confidence and retain client trust in your firm as they go through what is likely to be one of the most trying times of their lives.