Here Are A Few Tips On Managing Your Finances During And After Divorce
The decision to opt for a divorce or separate from one's spouse is a difficult one. Aside from the emotional toll it takes on you and your family, the financial repercussions of divorce are difficult as well. From dividing assets to separating bank accounts, there is much that needs to be considered during this process. If the divorce is amicable, then the terms of separation are agreed upon by both parties making the financial aspect of the divorce simpler as well. However, in case the decision of divorce is not a mutual one, the proceedings often become messy and several decisions have to be ironed out beforehand.
Here are a few important aspects to consider before taking a divorce:
Understand Your Finances
The most important thing to keep in mind during a divorce is to avoid making emotional decisions on the financial aspects of the separation. If you are a woman seeking a divorce, keep a track of your husband's financial income and earnings. Read all the information regarding alimony and spousal support to help you claim what is rightfully yours. During a divorce, everything is to be divided between the two parties. Take into account your own financial situation and then make a list of things you want to claim.
Bank Accounts
In case you and your partner hold a joint account together, it is best to start by dividing the assets in the joint account. Make a list of all your bank accounts, owned separately or together, and keep a check on your savings. Once you have listed out your accounts you can proceed by beginning the process of closing your joint account together. In case of an amicable split this process is easier, however, if that is not the case then you may have to wait to close the joint account until after the divorce settlement. Ensure you open a new bank account for yourself and transfer your savings into the new account. For joint investments like stocks and securities, it is best to evaluate the value of each asset before division.
Loans And Credit Cards
Along with all the assets ensure you evaluate all the liabilities as well. Be it an outstanding loan or credit card payments, it is important to assess the contribution to those expenses by each partner and pay off any debts.
Property And Assets
Once you have a clear understanding of your personal finances and savings you can begin to chart up a plan to divide the property. Take into account the contributions made by each partner towards all property jointly owned. The family house is often the most tricky aspect of divorce.
Child Support
If children are involved, both parents prioritise the welfare of the children and aim to protect their interests. If one spouse earns a larger income than the other their contribution towards the child's welfare should be more, irrespective of who gets custody of the child. Investments can be made in the name of the child for education or otherwise. The funds can be managed by either one or both parents until the child reaches adulthood.
