Virginia couples older than age 50 may be more likely to get a divorce than in previous decades. Research shows that over the past 25 years, the divorce rate has doubled for this age group. This can present financial concerns for people who are nearing retirement, but there are things they can do to reduce the likelihood that this will cause problems.
What the research says about joint custody
Some parents in Virginia who are getting a divorce might believe myths about shared custody that are not supported by research. Studies show that unless there are extenuating circumstances, such as neglect or abuse, children usually do better in joint custody arrangements than in sole custody situations.
Federal system aims to standardize child support enforcement
When Virginia parents with primary custody don't receive their court-mandated child support payments, they can have trouble making ends meet. With the costs of daycare, after-school care, extracurricular activities and general expenses of life, child support can be critical. The federal government is working to develop a national system that will aim to synchronize child support enforcement activities across the country.
How divorce can impact a tax return
Virginia couples who are thinking about separating should understand that a divorce has several tax implications. For instance, it may be necessary for an individual to change his or her filing status from married to single. If a couple has merely separated, they could file taxes jointly or separate. Those who pay or receive alimony may need to acknowledge this on an income tax return.
Court rulings may change Chapter 13 bankruptcy rules
When Virginia residents file for Chapter 13 bankruptcy, they may have the ability to modify their mortgages. However, if the lien is a primary lien on a primary residence, the debt is generally fully secured even if the homeowner is underwater on the loan. This is usually not the case if a property is a vacation or investment property. In such a scenario, the property owner could be entitled to a "cram down."
Chapter 13 cram downs could come to some primary residences
Many people in Virginia who are unable to repay a large debt burden but want to preserve their mortgages, car loans and similar agreements make use of the provisions of Chapter 13 bankruptcy. Under a Chapter 13 bankruptcy, people have the ability to modify mortgages on investment properties and second homes, as well as car loans and similar secured loans for personal or real property, in a process known as a "cram down."
