Going through a divorce is one of the most challenging experiences for every couple, no matter how amicable the separation may be. Emotions can take center stage, especially when the children’s welfare is involved.
One of the most significant issues in a divorce is the separation of assets and properties. Ideally, experts would advise a prenuptial agreement, but newlyweds often brush this aside, thinking they will have an everlasting marriage.
If you’re going through a rough patch in your marital union and are considering filing for a divorce, consider taking these steps beforehand, so you don’t end up getting the short end of the stick when it comes to the just separation of assets and properties acquired during the marriage.
- Learn About The Applicable Divorce Laws
Divorce laws vary from country to country and state to state. In the United States, for instance, there are fault and no-fault states. Filing for a no-fault divorce in states where it’s recognized means a petitioner doesn’t need to prove fault for the other spouse.
Meanwhile, in areas where fault divorces are recognized, a spouse must cite legal grounds such as adultery, cruelty, prison confinement, and abandonment.
When it comes to property and assets division, jurisdiction can either subscribe to community property laws—which means the court divides the assets in half, except for properties acquired before the union—or equitable distribution laws.
In states where equitable distribution laws are applicable, asset allocation between the ex-couple hinges on what the court finds fair. That said, assets may not necessarily be split to a 50-50 share, as the court will have to consider both parties’ financial and economic contributions and status before coming up with a decision. Such is the case for couples divorcing in Australia, where it’s necessary to hire seasoned family lawyers to help protect your interests.
- Conduct An Asset And Property Inventory
Apart from hiring skilled legal counsel, strive to have a clear view of what you own, how much value they carry, and how much money you have. Make a list of the properties. It’s advised that you identify the assets under your name and those jointly owned by you and your partner.
In addition, have all the titles, financial and bank statements, and other proof of assets in one place. Don’t rely on electronic copies, as your spouse may beat you into changing the user details and passwords—leaving you helpless in a worst-case scenario
- Set Aside Some Cash For Yourself
You don’t know what your spouse may be capable of, and you don’t want to be left dealing with a wiped-out ‘joint’ bank account. So, instead of waiting until someone formally files for a divorce petition, secure yourself financially for the next few months by looking at your liquid assets.
Divorce can be costly and you must have enough cash to cover legal fees and other related costs on top of your regular individual and family expenses. Having some cash set aside for yourself and your children may help reduce the emotional hurt and trauma that your child goes through during the divorce.
If you don’t have a bank account, open one as soon as possible and fund it using cash withdrawn from your savings account or through other means—for instance, selling personally–owned or inherited properties.
- Freeze Joint Accounts
In a divorce, assets and properties aren’t the only ones subject to scrutiny and sharing. So are financial obligations such as debit and credit card payments. Contact your bank and close the joint credit account instead of paying for debts that did little in helping or improving your situation. Do the same for the bank that you share with your spouse, as well as your insurance policy payments.
Once done, open a separate account under your name to start getting your finances in order. If you don’t have a credit history, ask your trusted union about how you could qualify for a credit card to start.
- Hire A Financial Expert
Whether financially savvy or not, you may need to hire the help of a Certified Divorce Financial Analyst (CDFA) to explain the financial implications of every decision you’re going to take shortly before and even during the divorce proceedings.
A CDFA is a finance professional trained at evaluating and dividing marital assets including the ones that are highly contentious. Suppose your divorce attorney doesn’t have a financial background; it can be challenging to understand how their client can be affected by specific tax issues and rulings or the division of pensions, stock accounts, and other revenue-yielding assets.
A certified financial expert can help you deal with these complex subjects and advocate for your best interests.
Final Thoughts
Make sure to know everything there is to know about the legal and financial implications of the divorce process. For instance, failure to disclose all of your financial assets or hiding some properties can be viewed by the states unfavorably and it can lead to additional legal troubles.
Hence, your best defense is a skilled divorce attorney and a financial advisor to protect your rights, assets, and properties in legally acceptable ways throughout the whole course of the divorce proceedings.
