Preparing for the divorce process will pull you in many different directions. One minute you’re thinking about property and debt division, the next you’re worried about your children and after that you’re wondering about child and spousal support.
While every aspect of your divorce is important, your finances should be high on your priority list. Here are some of the many financial questions to answer as you prepare for divorce:
- Do you know which property is separate and individual? Without answering this question, you could end up losing out on property that you had every legal right to keep.
- Do you know which debt is separate and individual? Just the same as assets, you want to know if there are any debts you’re not responsible for. For example, if your inniment ex-spouse brought a large amount of credit card debt into the marriage, and you never co-mingled it, you may not be responsible for any of it post-divorce.
- Do you have a post-divorce budget? This is necessary if you want to hit the ground running once your divorce is behind you. Your budget should clearly outline your income and expenses, thus allowing you to best plan for the future.
- Where can you afford to live? For instance, if you want to remain in your family home, you must first know if you can afford the monthly mortgage payment and maintenance costs. If you can’t, there’s no reason to fight for it.
- How can you protect your retirement? No matter your age, it’s never too soon to think about retirement. If you have retirement funds, don’t overlook the importance of protecting them in your divorce. If you don’t, you’re likely to end up regretting it in the future.
Don’t get taken advantage of
When it comes to the divorce process, money has the potential to be a sticking point. You want to obtain all the assets you can, while minimizing the debts that you take on. And of course, your spouse wants the same.
When you know your legal rights and have a plan for protecting them, it’s easier to navigate through every challenge you face.