If you’re considering
divorce, you’re likely worried about how it will impact your finances. Whether
you’re in a high-net-worth marriage, you and your spouse work full-time,
or only one of you works, your financial situation is certainly going
For some spouses, divorce changes their lifestyle more than others –
every couple’s situation is different. There is consolation though:
when people are in unsatisfying, unhappy, or hollow marriages, they usually
feel that the
divorce process, no matter how difficult, is well worth it.
Regardless of your income, assets, and debts, it’s advantageous to
navigate your divorce wisely. While many of the divorce horror stories
you’ve heard are true, it doesn’t mean you can’t achieve
a satisfactory result. Often,
success in a divorce comes down to strategy.
Do you want to protect your finances in divorce? Here are some great ways
- If possible, run both of your credit reports so you can know exactly what
debt you owe, and which accounts are in whose name.
- If you are in the dark about your finances, it’s time to get familiar
- Make copies of all the financial records (e.g. mortgage documents, credit
card statements, taxes, auto loans, insurance policies, retirement accounts,
investments) and bring them into your first meeting with a divorce lawyer.
Speak with a divorce attorney
before you tell your spouse you want a divorce. This helps you be “proactive”
instead of “reactive.”
- Do not transfer or hide any assets. This can get you into legal trouble
and affect the divorce settlement.
- Create a post-divorce budget as a single person. Will you need to increase
your income? If so, start putting attention on this.
If you think you may receive
spousal maintenance, realize that it is not guaranteed and even if it is awarded, it may be
- If possible, pay off all marital debt before the divorce is finalized.
- Close any joint credit card accounts. Or, switch them so they are only
in one spouse’s name.
- Put serious thought into what you will do with the marital home. It’s
important that you make the right “business decision,” otherwise
the home can turn into a liability instead of an asset.
During and after the divorce process, you must be aware of how divorce
can affect your credit. If your spouse agrees to take on a marital debt
and he or she fails to pay it for any reason, the creditor can go after you,
even after the divorce. This is why it’s best to sever the financial ties whenever possible
before the divorce is final.
It is common knowledge that in the aftermath of divorce, it is more expensive
to support two households than one, especially when children are involved.
In many cases, it’s beneficial for the spouses to find ways to reduce
their living expenses while increasing their income until they reach a
new equilibrium, a new normal, which can take a year or two to achieve.
If you are looking for a Denver divorce lawyer, contactJones Law Firm, PC to schedule a free consultation with a caring and experienced
member of our legal team.