Knowledge is power when it comes to divorce finances

Knowledge is power when it comes to divorce finances

| Jan 21, 2021 | Divorce

If you never took much of an interest in the family finances, divorce is the time to start. Failing to understand your financial situation or leaving it in the hands of your spouse during a divorce is asking for trouble.

Financial calculations to make when filing for divorce

Here are some of the areas of your finances you need to consider:

  • Assets: Get copies of all your joint financial assets. If your spouse does not give them willingly, you could apply for them through a court. If you are unsure of an asset’s value, have an independent expert assess it. Do not rely on outdated valuations or your partner’s word.
  • Debts: It can be easy to focus only on the assets and forget about any outstanding debts. You may also need to divide these in your divorce.
  • Divorce costs: Both you and your spouse will need an attorney, and you will need to pay the legal fees involved in registering your divorce.
  • Immediate living costs: Maybe one of you moves out while the divorce is ongoing. Ensure you have enough to pay for a separate property if needed. Day to day living costs will rise if you have two properties. If your spouse controls the purse strings, ensure you have cash for day to day outgoings.
  • Future living costs: Work out a realistic budget so you can negotiate a divorce settlement that does not leave you short of funds.
  • Long-term finances: If you or your partner have pension plans or retirement accounts, you will need legal help to understand how divorce affects these. Your spouse may or may not need to share these with you.

Choosing a collaborative divorce can help you achieve a divorce settlement that puts you in a good financial standing for the future. It can also save you money compared to a litigious divorce.