The grief that comes with divorce can be profound, whether you’ve been blindsided by infidelity or fallen out of love. This period comes with emotional grieving, anger, and insecurity, no matter how amicable the split was.
And with the pain comes the need to put yourself together long enough to make important financial decisions that won’t derail your entire life. All the pain and betrayal may lead to highly emotional decision-making, leading to terrible decisions that are harmful to your finances.
How about Divorce Financial Planning: 7 Things To Know
As you face your divorce, take the necessary steps to ensure that you’re financially prepared. Here’s what you need to know regarding divorce financial planning.
You May Need A Forensic Accountant
Sometimes spouses tend to try and keep more than their fair share of assets during the divorce process through overseas accounts, trusts, or even transferring assets to trusted individuals. In some cases, the couple’s financial situations are more complicated, and as a result, it may be time to hire a forensic accountant.
A forensic accountant may help you find hidden assets to ensure you don’t lose anything rightfully yours. You may also find other assets you didn’t know about, such as property needed during property division in divorce.
Avoid Rushing The Process
Since the divorce process can be daunting, most couples may want to rush through it and be done with it as fast as possible. But the problem with a rushed divorce is that the more vulnerable spouse may get an unfair amount of assets.
If one spouse desires to quickly finalize the process, the other party may use this to convince them to settle for less. As a result, you may need to go through the proper channels to locate and value every asset.
You May Need To Combine A Complete Financial Inventory
Take your time and go through your assets, liabilities, ongoing expenses, and income, then compile them, as it’s a requirement that needs to be provided by both parties. Next, the court will decide what each party gets to take away.
The inventory division will depend on the state laws surrounding the marital properties and assets. This division will ensure that both parties get their rightful shares.
The best divorce websites offer forms that are comparable to the forms that a lawyer could use while completing your divorce paperwork. By checking these out, you can find the best forms for your situation.
Have Enough Knowledge Of All Marital Debts
You must be on top of your finances and be aware of any marital debt accumulated over time. You can get an attorney to help you order and review your spouse’s credit report containing hidden debts such as credit cards, student loans, auto, personal loans, or mortgage debts.
In addition, you can inquire about hidden business liabilities that may be hard to acquire but are equally important. Getting sufficient knowledge of the debts acquired can help prevent creditors from coming after you for debts you didn’t know about.
You May Need To Formulate A Short-Term Financial Plan
During the divorce process, you may be unable to access your financials except to get the main bills paid off. As a result, you may need to be financially prepared for any unforeseen expenses that you may inquire about during the entire process.
By coming up with a short-term financial plan, you’ll be able to communicate with your ex-spouse to get everything you need and cover additional costs without any worries.
Avoid Misvaluing Marital Assets
Different assets vary in value, incredibly complex ones such as a business. As a result, you may need to consult a professional who’ll get you a valuation of your assets and ensure you get your fair share.
Remember to factor in additional costs that may result from some assets and get the proper settlement. For instance, if you are entitled to your house, you may need to add the maintenance costs that you may incur.
Be Open To Mediation Or Arbitration
The court process of litigating a divorce can be long and stressful for both couples. You can consider two types of alternative dispute resolution: mediation or arbitration. These ways will help you avoid spending a lot of time, incurring expenses, and the added stress of the court process.
With mediation, you can retain more control over financial outcomes that you may need to give up in court.
Divorce Financial Planning
The financial process in a divorce isn’t easy. It isn’t too complicated an asset. As a result, you’ll need a financial plan to protect against unfairness during the divorce process. And as you chase the bigger inventory, don’t forget more minor things.
You’ll need You’llrealistic about things like pets, furniture, dishes, artwork, amongst others, as it isn’t worth isn’t legal fees over them. Though the process may be overwhelming, take things one step at a time and keep a clear head to make sure you’re equipped to face your new life moving forward.