Posted on: 24 August 2017Share
Dollars and cents may not be the only thing on your mind during the divorce process, but you should certainly give it its due. After all, the decisions you make can continue to affect you and the lives of your children for many years to come. If you take some time now and prepare for the below issues, you can give your financial situation a positive jolt, so read on to learn more.
Make a new budget: No matter what your marital financial situation looked like before, it's about to undergo a massive change. Facing your financial future can be tough, but taking a look at your bottom line is essential if you are to make good decisions during the divorce process. For example, if your numbers look bleak, you may need to ask for some more support from your soon-to-be ex. Spousal support is still alive and well and available for those that need it, even if only for a temporary or rehabilitative period of time.
Could that family home be too much of a burden? It may be natural to assume that you do want to get the house in your divorce settlement, but don't ask for it without doing your homework. Do some math and make sure that you are prepared to pay the bills that come with that home, which can include not only the mortgage but property taxes, homeowners insurance, repairs, and maintenance. If your home is older, you may find yourself spending a lot more than you bargained for on the repairs of major systems like the plumbing or heating and cooling systems.
Look beyond the obvious value of your marital assets: Make an inventory of everything that you and your spouse own right now, and consider how a particular asset could become an income producer for you. For example, you may have some terrible memories of that beach cottage and have zero interest in asking for it in the settlement, but you could turn heartache into triumph if you are able to rent it out and make money on it.
Make a line in the sand when it comes to credit card debt: In some states, you are 50% responsible for your spouse's credit card balance. Use a legal separation agreement to create a virtual line in the sand signifying your parting to ensure you don't end up furnishing a new apartment for your ex. Additionally, try to pay off any joint debts before you part ways.
To learn more, speak with your divorce attorney or firm like Madison Law Firm PLLC.