A divorce forces you to navigate a deeply personal breakup while also trying to separate financial ties to the other person. These are two very complicated, very involved processes that, if not handled properly, can impact your future.
When it comes to the financial side of things, it can help to have a couple of basic goals in mind to help guide the process. Three broad ideas that can bring you to a relatively manageable and logical approach include:
- Assets. It is helpful to put together a list of all assets before moving too far along with the divorce process. Have a basic understanding of what is available in savings accounts, real estate and if either partner has any business interests.
- Debts. Courts may consider any debts accumulated during the marriage as marital property — meaning both parties are responsible for the repayment. Put together a list of any mortgages, loans, credit card balances or other financial concerns that to address during the divorce.
- Retirement. Building up a retirement portfolio is an important step to future financial stability. A common example that can lead to larger financial issues is the temptation to negotiate these retirement assets in exchange for a more immediate asset like the family home. Although it may seem beneficial in the short-term, the long-term financial repercussions of such a trade could have unforeseen consequences like a need to continue to work longer than originally planned.
These tips will help to better ensure a smooth transition, but it is important to note that this is just a small portion of the divorce process. You can help to better ensure your interests are protected by delegating the matter to a legal professional.