Money Secrets in Divorce, Part 1

1. Don’t Let Emotions Dictate Your Financial Decisions

People often want to take out their hurt feelings on their exes. However, it’s important that you don’t let emotions interfere with your finances or the business at hand. In the long run, being spiteful could hurt you — right in the wallet.

2. Everything Is Fair Game

Don’t make the mistake of thinking assets in your name can’t be claimed by your spouse in a divorce.

Practically everything is divisible. Because the same holds true for liabilities, couples should consider all factors when doing their financial planning, including what is or isn’t a liquid asset.

3. Keep Track of Your Spouse’s Spending

If you’re thinking of filing for divorce or legal separation, take a look at your spouse’s financial situation.

4. Gather Key Evidence Before Filing

If you’re thinking of filing for divorce, it can be tough not to walk out the door immediately when your spouse pushes your buttons. Take time to collect evidence before a split. Along with taking pictures of assets, make copies of account statements and jot down any important numbers. Preparation is key if you hope to come out ahead in court.

5. Get Property Appraised Before You Part Ways

When it comes to divorce, almost all property is fair game. Couples can’t hope to get their fair share if they don’t know the value of their assets and whether those assets can increase their individual net worth.

6. Don’t Hide Assets

Trying to deceive your spouse about money by hiding or concealing assets might also mean breaking the law. There could also be stiff penalties, including monetary sanctions. To protect yourself and your property during a divorce, declare all assets upfront.

7. Watch Out For Hidden Tax Implications

During a divorce, stay alert to hidden tax obligations

8. Get Job Training or Update Your Education Before Filing

If your spouse is currently supporting you, consider taking the time to dust off your resume and freshen up your skill set before seeking a divorce.

9. Familiarize Yourself With Your Finances Before You Split

Often, one person in a household manages the finances. But such an arrangement can create a power imbalance when it comes time to negotiate settlements. So, what can you do to protect yourself? Seek professional help to guide you in making more informed decisions about finances before filing for divorce.

10. Know What Your Biggest Asset Is

Many people mistakenly believe their house is their biggest asset — when it’s actually a retirement or pension account. Even if your retirement account is less than robust now, the court will likely consider its future value when dividing assets.




Source = Lia Sestric