Do Your Divorce Right: How To Reduce The Financial Impact

Many people dread the thought of divorce because of what it does to finances. Nobody really wins in a divorce. Sometimes people come out ahead, especially in high asset divorces, but that is the exception rather than the rule.

By doing your divorce right, you can avoid getting caught up in insurmountable debt afterward. You can stay on track as much as possible so you can achieve your financial goals. Here are some tips to minimize the financial effects of a divorce.

Get Organized 

A divorce requires a lot of details and data. If you want a divorce, start gathering this information now. You’ll need everything you can get your hands on regarding assets and finances, such as tax returns, bank statements, pay stubs, mortgage statements, and other documentation relating to assets and liabilities. If you’re in charge of the finances, this may be the easy part. If you’re not involved in the monetary workings of your marriage, you have a lot of work to do.

Get Expert Help

Don’t opt for a DIY divorce. You need professional help in these types of matters. Get a good lawyer as well as an accountant or other financial expert on your side. Every divorce has unique aspects that can benefit from the help of a professional. It’s money well spent to help you understand the impact of your divorce, both short-term and long-term.

Understand Your Benefits 

Many people can receive benefits from their ex-spouses. This includes Social Security retirement benefits, company retirement plans, pensions, and health care. If your ex-spouse was in the military, you can receive benefits from that as well. Don’t overlook these important benefits. Your lawyer can help you understand what you are entitled to receive.

Follow Through With Post-Divorce Actions

The work doesn’t stop with the final divorce decree. You still need to close out joint accounts and make sure your ex-spouse is off your accounts. This means changing the beneficiary on your life insurance and retirement accounts. Make sure your ex doesn’t have access to your credit cards or bank accounts. Be sure to retitle assets such as vehicles and homes into your name, if applicable. Not doing these things can lead to unauthorized withdrawals and excessive credit card debt. You may want to check your credit score to be sure everything is accurate.

Keep Your Emotions Under Control

A divorce is a highly emotional experience. Don’t make impulse decisions based on your emotions. These decisions can be costly. Rely on your lawyer to help you make logical decisions. Your lawyer knows the laws and legal rights that apply in your case.

Seek Legal Help

While nobody wants to go through a divorce, there are ways to lessen the impact and make things less stressful. Don’t try to handle a divorce on your own; the right legal help is well worth the cost.

Let Fort Lauderdale divorce lawyer Edward J. Jennings, P.A. tackle your divorce case. We’ll help you understand your rights and resolve all your divorce issues. Fill out the online form or call 954-764-4330 to schedule a consultation.

Resource:

military.com/money/personal-finance/5-tips-lessen-financial-impact-of-divorce.html