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Your finances and divorce: Don’t take any chances

On Behalf of | Nov 13, 2020 | Divorce

Most people who are facing the divorce process have concerns about the impact on their finances. Adding to this, if you don’t have a solid grasp of your current circumstances, it could result in trouble down the road.

When it comes to your finances in the divorce process, there’s no good reason to take a chance. It’s better to be safe than sorry, even with the smallest of details.

Here are five tips to guide you:

  • Create a property and debt division checklist: Use this to carefully outline all of the assets and debts that could come into play during your divorce. You can also create a checklist to outline which assets and debts are separate and which ones are marital.
  • Talk about joint debt with your spouse: Before you divorce, discuss any joint debts that you have and may be willing to pay off. For example, if you have enough money in savings to pay your joint credit card debt, it may make sense to do so.
  • Watch for hidden assets: Don’t be surprised if your soon-to-be ex-spouse attempts to hide assets from you. They may do so with the idea of keeping it from the court, so that it’s not divided.
  • Create a post-divorce budget: It’s important to focus on the here and now, as well as the future. Your post-divorce budget will start to come together as you prepare for divorce, so now’s the time to get the basics in place.
  • Beware of the tax implications: There may be tax implications associated with some assets, such as retirement accounts, stocks, bonds and mutual funds. If you have concerns about this, consult with an experienced tax professional. It’s best to plan for this in advance.

Make changes along the way

Even if you follow the tips above, you may need to alter your approach along the way. Don’t hesitate to do so, as flexible is critical to success during the divorce process.

As long as you prepare accordingly and take steps to protect your legal rights, you should be able to come of your divorce with a clear idea of where your finances stand.