Divorce can inspire significant financial impacts for years to come. Therefore, it’s essential to be prepared for the journey ahead by taking proactive steps before divorce proceedings begin. The goal is to get your fair share of the marital estate or what you are legally entitled to when the divorce is settled.
It is important to prepare for the property division process. This means gathering and organizing all relevant financial documents like investment and bank accounts, outstanding financial obligations, tax returns, retirement account statements and mortgage documents. This information can provide a clear picture of your financial situation and help you make informed decisions during divorce. It can also help you to identify anomalies or underhand tactics by your spouse that may deny you your rightful share of the marital property.
Consider tax implications
There may be tax consequences related to your divorce. For instance, your filing status will change as you can no longer file a joint tax return. In addition, certain taxes may apply to some assets, like funds withdrawn from a retirement account. Understanding these and other tax implications will help you avoid surprises and plan accordingly.
Create a post-divorce budget
It will not be business as usual after divorce, especially with your finances. You will no longer be sharing expenses with your spouse, so it’s important to create a budget aligned with your new financial reality. Account for your income, expenses and any support payments you may receive or need to make. It will help you plan for your financial future and help you to ensure that you can meet your needs once the divorce is finalized.
Reaching out for early legal guidance if you are contemplating a divorce can help you confidently navigate the legal process, avoid costly mistakes and protect your interests. With a fair settlement, you can transition to the next chapter of your life with greater financial security and peace of mind.