Evaluating Your Finances After Filing for Divorce
After filing for divorce, you should first assess your current financial situation. This includes identifying the financial issues that you’ll need to manage during the divorce process, such as debts, credit cards, loans, joint accounts, child support, and alimony. Some of these matters may need to be settled in court when your marriage is resolved.
The key questions to ask yourself:
– Are you filing for a contested divorce and asking the court to divide property and assets? Or are you filing for an uncontested divorce? An uncontested divorce is cheaper and gives you more control over your assets. However, it requires you to reach an agreement on key financial and family issues, which isn’t always easy.
– How will you pay for attorney fees when hiring a divorce lawyer? In some cases, one spouse may be required to pay the other party’s attorney fees.
– Is mediation worth paying for? Mediation can help you negotiate financial issues outside of court.
– Will either partner be required to pay child support and/or alimony?
– What joint property do you own, and how will it be divided? If your state applies community property laws, you will need to split marital assets 50-50. If you are in a state that applies equitable distribution, you may be required to divide assets fairly, but not necessarily equally.
– What joint debts do you have? Who will be responsible for them? Can the debts be refinanced?
– What property will need to be sold?
– What bills will need to be paid during the divorce? Who will bear the costs?
– Where will each partner live during the divorce? How will housing costs be covered?
– Who will cover the costs of children’s activities? How will childcare be divided during the divorce?
Ideally, you can work with your partner to resolve these issues. In some cases, you may need court intervention to protect your rights. This may be the best option if your partner is hiding assets, refusing to pay necessary bills, failing to disclose debts, or denying access to joint property.
Seeking Professional Help
Filing for divorce can be a very complicated matter. You need to understand your state’s laws to protect your rights and navigate several steps to dissolve your marriage. It’s always best to have an attorney assist you in the divorce process. If you are concerned about the costs of divorce, there are many resources available to help you find low-cost or free legal services. The USA.gov website has links to several websites where you can find legal assistance that may be affordable for you.
Note: An uncontested divorce (where you and your partner agree on the key issues regarding the dissolution of your marriage) can be much cheaper than a contested divorce. Typically, you won’t have to pay large amounts for a lawyer or filing fees if you reach an agreement without going to court.
Taking Steps Toward a Secure Financial Future
In many cases, you will be restricted in what you can do with joint property until the divorce is finalized. However, you can take certain steps during the divorce process to help prepare yourself for a more secure financial future after your marriage ends.
Set up a new bank account for yourself and apply for new credit cards in your name only. Create a new budget based on your post-divorce income. Look for places to live after the divorce. Change your will. Update your advance directives if you had granted your ex-spouse authority to make healthcare decisions on your behalf. Remove your ex-spouse as a beneficiary from life insurance policies and retirement accounts. Look for health insurance options if you were previously covered through your spouse. Notify your car insurance company if you will be living in separate homes. Inform the businesses you deal with if you have changed your address.
Moving
Quick preparation for life after divorce can help make managing money less stressful after your marriage ends.
Note: Some assets may not be easily divided even after divorce is finalized, such as retirement funds and accounts that you cannot access until you reach your later years. A qualified domestic relations order can help ensure that property division occurs properly later in life.
Conclusion
Divorce can be a lengthy process. It can affect every aspect of your life, including your finances. Work with an attorney to understand your rights and prepare for a new financial life after divorce. With the right steps, you can streamline the process and protect your financial future.
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Sources:
– California Judicial Branch. “Dividing Property and Debts in a Divorce.”
Source: https://www.thebalancemoney.com/sorting-finances-after-divorce-5184034
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