How to protect your money in a divorce
Divorce is an emotionally exhausting experience but always remember these words, "Divorce is business". Your relationship may be over, but you have to think about your financial future, especially if you have children and a myriad of assets acquired during your marriage.
Breaking up is acrimonious in many respects and you may want to wring your spouse dry, but what you want to achieve at the end of the day, is to secure the best financial situation for yourself.
Breaking up is acrimonious in many respects and you may want to wring your spouse dry, but what you want to achieve at the end of the day, is to secure the best financial situation for yourself.
Do your research
It's essential to fully understand your assets and know what to fight for in your divorce.
Take these five important steps to protect your money in a divorce:
Dive into the details. Gather all information on shared financial entities - income, real estate, check books, stock and shares, pension plans, tax returns - so you will be prepared in making an educated decision on what you want and what you can do without.
Hire a divorce financial analyst. In addition to your divorce lawyer, it may be worth employing a divorce financial analyst. A 50-50 division of assets is a common rule of thumb in most divorce proceedings but your spouse can always hide assets or force you into an unfair deal. A professional analyst is more skillful at uncovering dodgy moves and more knowledgeable in projecting your financial future by comparing different settlement scenarios.
Let go of emotional attachments. Most women tend to want the marital home - it's a place the children are familiar with and moving is frankly another upheaval you think you don't need. But consider this: keeping this house means there are mortgage payments, property taxes and other maintenance costs. Also, this is one of the least liquid assets you could have. If you need the money in future, you can't just sell part of it. Unless you are confident of other streams of income, banking on the house may be a bad financial decision.
Re-evaluate your insurance coverage. Life insurance can help protect your plans for your children's future should anything happen to you, while disability income insurance and long term care insurance can help safeguard your way of life if you become sick or injured.
Think long-term. What may be more convenient for you now may not safeguard you 20 years down the road. Don't exclude the possibility your ex could die, move countries, or get fired. Prepare yourself for the event of default child support and alimony payments. Go for stock options - they may not be in your name but you are entitled to some of the proceeds. Zero in on your former partner's pension plan. Although this can only be gained after the working spouse retires, at least you are securing some money for the far future. Don't forget social security because you can get half of your ex's benefits after 10 years of marriage, and vice-versa.
Dive into the details. Gather all information on shared financial entities - income, real estate, check books, stock and shares, pension plans, tax returns - so you will be prepared in making an educated decision on what you want and what you can do without.
Hire a divorce financial analyst. In addition to your divorce lawyer, it may be worth employing a divorce financial analyst. A 50-50 division of assets is a common rule of thumb in most divorce proceedings but your spouse can always hide assets or force you into an unfair deal. A professional analyst is more skillful at uncovering dodgy moves and more knowledgeable in projecting your financial future by comparing different settlement scenarios.
Let go of emotional attachments. Most women tend to want the marital home - it's a place the children are familiar with and moving is frankly another upheaval you think you don't need. But consider this: keeping this house means there are mortgage payments, property taxes and other maintenance costs. Also, this is one of the least liquid assets you could have. If you need the money in future, you can't just sell part of it. Unless you are confident of other streams of income, banking on the house may be a bad financial decision.
Re-evaluate your insurance coverage. Life insurance can help protect your plans for your children's future should anything happen to you, while disability income insurance and long term care insurance can help safeguard your way of life if you become sick or injured.
Think long-term. What may be more convenient for you now may not safeguard you 20 years down the road. Don't exclude the possibility your ex could die, move countries, or get fired. Prepare yourself for the event of default child support and alimony payments. Go for stock options - they may not be in your name but you are entitled to some of the proceeds. Zero in on your former partner's pension plan. Although this can only be gained after the working spouse retires, at least you are securing some money for the far future. Don't forget social security because you can get half of your ex's benefits after 10 years of marriage, and vice-versa.
by luiyuming
I'm a web editor from Singapore but living in Tokyo. One website I'm working on is called, Get Divorce Advice, with a focus on divorce issues and divo... (more)
Explore related pages
Free Divorce Information- Divorce describes the procedure that ends the legal bond formed between two peop...
Fatherhood 2.0©- Being a father is at once, the most challenging and most rewarding job on earth....
What is Divorce Mediation?- Susan Deveney, an expert on negotiating divorce settlements, has been a divorce...
Divorce- You see, often people get married with the idea that their "chemistry" or undyin...
Trying to Save Your Marriage? Two Secret Techniques About "How To Save My Marriage" - If you're wondering, "How to save my marriage?" then you only have to look aroun...
Marriage Counseling: Saving Your Marriage- How do you keep the passion burning even after you've said "I do"? It's tragic t...
