Facing a divorce is emotional and often leaves you feeling uncertain about your future and your options. Unfortunately, that uncertainty and your investment in the relationship can lead you to miss some of the financial warning signs that can cost you significantly in your divorce planning. Here's a look at some of the things that you should be mindful of when you're getting ready for a divorce.
Gather Records of All Joint Debts
When you and your spouse split up, it's important that you have current records of all of the debts that the two of you took on together. The more detailed the information, the better it will be during the settlement process. This ensures that all of the marital debts are accounted for in the settlement, protecting you from being stuck with the full balance of something simply because it wasn't addressed.
Assess Your Asset Values Properly
The division of marital assets can be contentious, especially when there are things that you both desire to retain. Finding an equitable arrangement means knowing the accurate value of each asset. You and your spouse may need to consider professional appraisals for some assets to ensure that the distribution is fair and balanced.
Consider Your Investment Accounts
Investment accounts, retirement funds, and life insurance policies need to be incorporated into your settlement agreement. If you have children, the settlement agreement can include designations for the children to be beneficiaries on specific policies, which removes your spouse from any beneficiary role, and vice versa, as part of the divorce.
Be Proactive About Suspected Hidden Assets
You may not consider your spouse to be one who might hide assets, but you would be surprised at what people will do in these situations. Deception is quite common in household divorce proceedings. If you have any reason to suspect or question if your ex is hiding assets, a forensic accountant can help you address the problem.
Clarify Any Tax Implications
Depending on the amount of any settlement in your divorce, there may be tax implications associated with the amount you receive. Make time to discuss your settlement with a tax attorney as part of the process so that you can prepare yourself for any tax liability that you may carry as a result.
These are some of the most important things for everyone to understand before filing for divorce. The better prepared you are for the financial implications, the easier the process will be.
Contact a local divorce lawyer to learn more.
Share1 May 2023
There are so many legal situations that you can find yourself involved with, but do those situations really require that you hire an attorney? Some instances you may not need an attorney working with you, but in other situations, an attorney is definitely a necessity. This blog contains tips and advice for working through the different elements of the legal system. You will find information that can help you determine if/when you need to hire an attorney to represent your best interests. Knowing this information can help you avoid the costly mistake of taking on the legal system without someone who knows how the system works.
