Planning for a Divorce
Divorce is difficult and unpleasant on many different levels. Some are amicable and some are ugly. There are several things you’ll want to take care of before beginning the divorce procedures no matter what your reason for splitting is. Proper planning will ensure that this difficult time will be a smooth as possible when it comes to splitting assets and maintaining retirement plans in divorce. You’ll need to do a general assessment of your legal options and financial standing, choose and hire and attorney, and do a few things to safeguard your money and investments.
Divorce Options
Just as there are many reasons that couples choose to file for divorce, there are many different approaches to divorce. Divorces can be heated and angry or calm and agreeable. Some couples choose to use a mediator to help resolve issues of asset distribution, while some need to work it out in court. The idea of collaborative divorce has become increasingly popular in recent years for couples that cannot stay together but are parting amicably. Each individual situation dictates how much legal representation will be necessary and how the proceedings will go.
Lawyer Up
If you are even considering a divorce it would be very wise to speak with a divorce attorney. He or she will be able to give you advice on how to best protect yourself when you file as well as be able to help you sort out any peculiarities in the local divorce law of your state. You may have to pay for this consultation but it could save you a lot in the long run. This is an incredibly important step whether you have been married a long time or just for a short while, whether you have children and a lot of assets or not. The consequences of not protecting yourself could be severe and long lasting. Alimony and loss of retirement funds are two huge areas that a qualified divorce attorney can help you avoid.
Income Assessment
One of the biggest sticking points in any divorce settlement is money. Every couple has to find a way to fairly divide the assets they’ve accumulated while together. When planning for a divorce you’ll need to have a good understanding of how much your spouse earns each year. With this information, you’ll be able to have a better understanding of what your obligations will be in divorce and therefore be able to plan for them..
It’s also crucial to make a realistic estimate of what you earn or could earn in a year. If you’ve been retired for a while, you may have to go back to work for a while as part of your settlement. This might mean retraining or further your education before you are eligible to enter the workforce again.
Account for Shared Assets and Debts
It may sound obvious but it’s critical to make a list of all of the assets held by the family. You’ll have a hard time getting your fair share of assets you don’t know about! This will include physical properties such as houses and their respective mortgages, vehicles, retirement plans and pensions, as well as whatever savings you may have accumulated during the marriage. If you are getting divorced, one of the most challenging aspects will be the division of property. An experienced lawyer on your side can help you obtain a fair valuation for your real estate and assist in navigating your state's property division laws.
It’s also important to get a good understanding of the debts that the family has incurred. Unfortunately you’ll have to take your fair share of these as well. When going through the divorce proceedings you’ll have to account for all credit card debt, personal loans, and mortgages. Some debts such as shared credit card debts are extremely hard to prove and you may end up with more than your fair share if your records aren’t good enough.
Get Yourself Financially Stabilized
Divorces are not cheap and it’s a good idea to plan for a wide variety of unexpected expenses. Start saving money as soon as possible to help make it easier to pay for legal fees and the cost of starting a new life on your own. Making large purchases immediately before filing for divorce is never a good idea. You’ll need the money once you file and you’re likely to only end up with half of what you bought!
Divorce Options
Just as there are many reasons that couples choose to file for divorce, there are many different approaches to divorce. Divorces can be heated and angry or calm and agreeable. Some couples choose to use a mediator to help resolve issues of asset distribution, while some need to work it out in court. The idea of collaborative divorce has become increasingly popular in recent years for couples that cannot stay together but are parting amicably. Each individual situation dictates how much legal representation will be necessary and how the proceedings will go.
Lawyer Up
If you are even considering a divorce it would be very wise to speak with a divorce attorney. He or she will be able to give you advice on how to best protect yourself when you file as well as be able to help you sort out any peculiarities in the local divorce law of your state. You may have to pay for this consultation but it could save you a lot in the long run. This is an incredibly important step whether you have been married a long time or just for a short while, whether you have children and a lot of assets or not. The consequences of not protecting yourself could be severe and long lasting. Alimony and loss of retirement funds are two huge areas that a qualified divorce attorney can help you avoid.
Income Assessment
One of the biggest sticking points in any divorce settlement is money. Every couple has to find a way to fairly divide the assets they’ve accumulated while together. When planning for a divorce you’ll need to have a good understanding of how much your spouse earns each year. With this information, you’ll be able to have a better understanding of what your obligations will be in divorce and therefore be able to plan for them..
It’s also crucial to make a realistic estimate of what you earn or could earn in a year. If you’ve been retired for a while, you may have to go back to work for a while as part of your settlement. This might mean retraining or further your education before you are eligible to enter the workforce again.
Account for Shared Assets and Debts
It may sound obvious but it’s critical to make a list of all of the assets held by the family. You’ll have a hard time getting your fair share of assets you don’t know about! This will include physical properties such as houses and their respective mortgages, vehicles, retirement plans and pensions, as well as whatever savings you may have accumulated during the marriage. If you are getting divorced, one of the most challenging aspects will be the division of property. An experienced lawyer on your side can help you obtain a fair valuation for your real estate and assist in navigating your state's property division laws.
It’s also important to get a good understanding of the debts that the family has incurred. Unfortunately you’ll have to take your fair share of these as well. When going through the divorce proceedings you’ll have to account for all credit card debt, personal loans, and mortgages. Some debts such as shared credit card debts are extremely hard to prove and you may end up with more than your fair share if your records aren’t good enough.
Get Yourself Financially Stabilized
Divorces are not cheap and it’s a good idea to plan for a wide variety of unexpected expenses. Start saving money as soon as possible to help make it easier to pay for legal fees and the cost of starting a new life on your own. Making large purchases immediately before filing for divorce is never a good idea. You’ll need the money once you file and you’re likely to only end up with half of what you bought!