Divorce can be a time of significant financial changes in your life. Not only will you divide your savings and your possessions, you will also transition to life in a single-income household. This can leave many wondering how they can enter the next stage of their life while also protecting their financial health.
1. Know the value of your possessions
Many people want to move forward as soon as possible once they have decided to divorce. However, their finances may depend on taking the time to properly value their assets. This can be especially important for valuable assets like real estate, artwork, antiques and collections. For example, if you do not know the true value of your home, you may accept less than your fair share. Proper valuation of these possessions, however, gives you the information you need to create a fair solution for property division.
2. Consider how you will handle debt
Just as the court will divide your savings and property, it will also distribute the debts you and your spouse acquired during your marriage. Proactively planning for the impact of that debt allows you to create a plan for paying your share of those bills with less household income.
3. Be sure to update important documents
You and your spouse may be listed together on a variety of documents, from car titles to stocks and bonds. Changing names on these documents ensures that the right people have legal ownership of important possessions, and updating your beneficiaries ensures that the right people benefit from retirement savings and other accounts.
4. Create a legal strategy that supports your goals
When protecting your financial health is a key concern in divorce, it can help to discuss your wishes with an experienced attorney. Not only can they provide insight into your options, they can help you create a legal strategy that protects your financial health today and lays the foundation for stronger financial health in the future.