Take These Steps To Protect Yourself Financially When Getting A Divorce
It’s always heartbreaking when a marriage fails. It may have resulted from the betrayal of a loved one or because two people drifted apart.
Along with the emotional stress that divorce brings, you have to deal with the financial ramifications. If you’re not careful, you could find yourself in a much worse situation financially after the divorce is finalized. This article will discuss steps you can take to protect yourself financially during and after your divorce.
Involve A Legal Professional
The first and most important step you should take is to involve a legal specialist, such as an experienced divorce lawyer. They’ll be able to help you understand your rights and options and also help you protect your interests.
They can ensure a fair outcome by navigating the court system and representing you in negotiations or trials. Once you’ve secured the services of a legal professional, don’t agree to anything until you’ve had a chance to speak with them first.
Brisbane is the most populous city in Queensland, with a 2022 population of 2.65 million. If you go online to look for a family lawyer in Brisbane, you can request the first consultation at a fixed price, whether it’s regarding divorce and separation, domestic violence, or children’s matters.
It’s possible to receive help from international family lawyers who can help with property sales, superannuation, and court procedures.
Speak To An Accountant Or Financial Planner
It’s important to have a complete picture of your financial situation and options to discover what would work best for your individual situation.
Accountants and financial planners are sufficiently qualified and experienced professionals to help you understand the financial implications of divorce. They can clarify any issues with taxes or complicated financial assets.
Additionally, they can provide options for splitting these assets and ensure that you’re getting your fair share. They can also help you create a budget and plan for your future financial security.
Consider Mediation
This is a process where you and your spouse sit down with a neutral, third-party mediator to discuss the terms of your divorce. The mediator will help facilitate discussion and provide guidance but will not make any decisions for you or your spouse.
Mediation can be an effective way to agree on your divorce without going to court, saving you time and money.
During mediation, you and your spouse will have the opportunity to discuss all aspects of your divorce, including financial issues such as property division, child support, and alimony.
This can help you reach a fair agreement for both parties involved. It’s important to remember that mediation isn’t binding, so either party can still choose to go to court if they’re not happy with the outcome.
Gather Your Financial Documents And Record All Expenses
Your financial documents will include things like bank statements, credit card bills, mortgage paperwork, tax returns, investment account statements, and details of any other assets.
It’s important to collate these because you need to have a clear picture of your finances before you can start dividing up assets and liabilities. Once you’ve gathered all your documents, have them ready to share with your attorney.
Keep track of all expenses related to the divorce, including legal fees, child support payments, and spousal support. Include details of all those incurred before and during the divorce process.
It’s important to keep a detailed journal of all money spent and earned during the marriage, as this will be considered when dividing up assets.
Get A Copy Of Your Credit Report And Improve Your Rating
A credit report is a history of your borrowing and repayment habits. It includes information about your credit accounts, such as whether you pay your bills on time, how much debt you have, and whether you’ve been sued or arrested for not paying debts. This will give you an idea of where you stand financially and what shape your credit is in.
The court may consider your credit history when making decisions about child custody, alimony, and other financial matters. It’s important to have a good credit score both during and after the divorce because it can save you money on loans and help you get approved for apartments, utilities, and other services. A bad credit score can make it harder to get approved for loans and result in higher interest rates and fees.
Change Your Accounts
If you have any credit cards with your spouse, it’s important to close these before the divorce is finalized. This way, you won’t be liable for any debts they rack up after the split. You should also consider getting a new credit card in your own name so that building up your own credit history.
It’s also a good idea to open up a separate bank account in your own name to save for your future. This will help you become financially independent and give you extra peace of mind.
Protect yourself financially when getting a divorce: other things to update
Once the divorce is finalized, update your will and beneficiaries on all accounts. If you have minor children, you’ll want to name a guardian for them in your will. You’ll also want to make sure that your estate planning documents are updated and in line with your current wishes.
If you owned property with your ex-spouse, you’d need to change the deed to reflect the new ownership arrangement. You may also need to change your health insurance coverage if you were on your spouse’s plan.
Also, don’t forget to update your power of attorney, healthcare directive, tax returns, mortgage information, and other legal documents involving your ex-spouse.
As you can see, there are many things you need to think about regarding your finances, but fortunately, professionals can help. They can take you through this challenging season as you emerge into a new and brighter future.
