Divorce processes are usually as emotionally tasking as they are draining on finances. Beyond the cost of legal representation and attorney fees, the outcome of a divorce can potentially turn around your financial situation for the worst. It can affect your pension, 401ks, mortgage payments, and more. This is why it is necessary to take steps toward protecting your money during a divorce. Continue reading to see tips for this.
Understand your and your spouse’s financial position in detail
Immediately you start considering a divorce, you will need to determine how much money you and your partner have, whether tied up in assets, credits or cash. This also applies to debts owed. By doing this evaluation, you fully know what a divorce might mean for you financially.
Work towards separating any joint accounts
If you and your spouse keep joint accounts, it is time to move your money to your personal bank accounts. This is necessary, especially if you do not trust your partner to squander the money. Be sure to exercise caution, however, as violent and selfish partners may act out in response to your moving money. As long as you take only what belongs to you and notify them after you take action, you should have no problems with this in court.
Do not try to hide assets
You may panic and want to keep an emergency fund if divorce proceedings do not go in your favor. Please resist the urge to do this, as it is potentially harmful to your divorce. It results in complications with your case (leading to higher attorney fees), and the court will lose trust in you. Such issues are why it is advised that couples keep separate emergency funds, most notably in marriages where assets are held jointly or in the other spouse’s name.
Get a financial expert on your side
If you have a high net worth and are concerned about losing it all in the divorce process, a forensic accountant can help you work around this. By finding loopholes, they can present your assets and expenses such that a portion of your money is inaccessible, whether or not it is deemed as marital property. There is also the issue of one spouse getting taxable assets while the other has access to non-taxable assets. You need a consultant to help place you in the most favorable position financially.
Consider your insurance plans
It is best if the spouse paying child support has life and disability insurance plans; this way, any unforeseeable occurrences will not disrupt living standards. If you have insurance, you will need to ensure that your kids or other family members, asides from your spouse, are the beneficiary.
Hire an expert family law attorney
You will need excellent legal representation for the best outcomes from your divorce. Your attorney can act in your interest if you suspect foul play from your spouse, financially or otherwise. Also, a lot of paperwork goes into divorce proceedings, without which you may not be given what you are entitled to. You must have an expert with the scope to handle this for you. Even if you and your spouse are going through an uncontested divorce, you will need to consult for legal advice. An attorney can freeze or release funds for you or use the information on foul play to ensure a better settlement for you.
If you need to consult a family law attorney about divorce and related concerns, contact the law offices of Lamb, Carroll, Papp & Cunabaugh today.