Dividing property and assets is one of the most challenging aspects of divorce. That is why you must take the proper steps to safeguard your finances and ensure you receive your fair share of marital assets.
U.S. News & World Report recommends taking a proactive approach when it comes to divorce and your finances. The following are a few strategies that can help you do just that.
Determine the exact value of your assets
Marital assets are those acquired after marriage. This can include money in saving and retirement accounts, life insurance policies, properties jointly owned, as well as other types of assets. Once you have established this figure, consider how much debt you and your former spouse currently have. A solid financial accounting allows you to make informed decisions when it comes to asset division.
Establish separate financial accounts
It is crucial that you go into your post-divorce life with a good financial foundation. Establishing separate accounts, including emergency savings, provides peace of mind when faced with changing financial status. However, you must tell your ex your intentions as you withdraw money from shared accounts. Attempting to hide money or deplete accounts of shared savings can negatively affect the outcome of your case.
Review life insurance policies
If you have a life insurance policy in your name, you probably filled out the beneficiary designations upon purchasing it. These designations list the recipient of the proceeds of the policy in the event you die. Information contained within the policy supersedes other estate planning documents, so you must update it upon divorce. You can also choose a backup beneficiary in case the first selection is not available.
There are many other financial matters to consider during divorce, from child support payments to tax obligations. The more prepared you are going into the process, the more control you will have over the outcome.
