The emotional stress you get from divorce proceedings is not the only thing that makes the entire process difficult. Either party also has to face the financial implications of separating. Considering that there has been a commingling of assets, a divorce could get messier when it comes to both parties’ financial interests.
Overall, the process can be expensive even after the divorce is finalized. Fortunately, there are legal strategies you can use to make sure you’ll get out of the marriage financially stable and with peace of mind to boot. Here’s a guide to help you secure your finances:
1. Keep track of your assets
The process will be easier if you have had a prenuptial agreement that defines what assets you own. Lacking one, on the other hand, could lead to lengthy negotiations that cost more than the total value of the actual assets you own. With this in mind, conducting an inventory of your personal property is important
Make sure to save receipts, proof of ownership, and other documents to support your claim over these items. When it comes to bank accounts and retirement savings, gather bank statements and withdrawal receipts that your divorce attorney may require. It’s also important to watch for suspicious withdrawals while proceedings are underway.
2. Don’t overlook tax implications
As you aim to divide your assets with your spouse, you will need to understand that your filing statuses will change and so will the amount of taxes you will pay. Smaller assets are simpler to deal with, but the process gets more costly and complicated when real estate, retirement plans, and other high-value assets are involved.
Often, it’s better to resolve potential tax issues before the divorce is finalized. In addition to your divorce attorney, a qualified tax adviser can also step in to help you deal with concerns related to filing tax returns separately and claiming child-related deductions and exemptions. Exploring these different options can help minimize the impact of the divorce on your finances.
3. Avoid litigation when necessary
Most divorce proceedings end up giving both parties preferred outcomes. The same can’t be said of divorcing partners who insist on litigating the matter in court. While it’s a great way to eliminate a lengthy deadlock, the stakes are higher and either party could lose more than when they were allowed to settle the divorce out of court. You may be advised by your attorney to opt for a swift settlement instead of shouldering extra legal fees and running the risk of losing other assets.
4. Finding ways to minimize child support
As a divorced parent, you may be assigned the responsibility of child maintenance depending on the results of the settlement. Taking on this responsibility as a father might present no serious financial implications, but you may have to ask the court to reduce your payments in times of hardship.
Being injured from an accident or being laid off could be good reasons to ask for a modification to your child support payments. For this, you may need to get a child support lawyer for men to help you face the court regardless if you’re the custodial parent or not.
Endnote
It’s no surprise that divorce is an expensive process and it could lead you to financial issues if you’re not making the right decisions. Keep this guide in mind so you can prepare for the financial fallout that your separation may cause.