5 Financial Tips During A Divorce And Custody Battle
Finances are a major issue in most divorces. Both parties are usually trying to get as big a share of the assets as possible, and this creates many challenges. If you're going through a divorce or if you think you will be doing so in the near future, there are certain things you can do to safeguard your financial future.
Tip 1: Separate Your Finances
During a divorce, both parties require as much money as they can get their hands on. This means that any joint accounts and/or credit cards can be misused by either party in the process. You could find yourself thousands of dollars in debt because your spouse had to pay their lawyer, buy a new car, get a new place etc. Move as quickly as possible to ensure your finances are separated.
Tip 2: Create a Balance Sheet of Assets and Debts
It is vital to have a clear picture of how much you and your spouse own and how much debt has been accumulated between the two of you. Without a realistic picture of your finances, you could make a mistake such as dividing the assets without considering the joint debts that you'll have to pay.
Tip 3: Have a Budget for Life During and After Divorce
The process of getting a divorce can be very expensive. This is the money that goes towards expenses such as:
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Paying lawyers and other experts
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Real estate costs from dividing marital property
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Financial advice
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Finding another place to live
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Therapy (for the parents and children) etc.
With so many expenses on the horizon, it helps to be prepared. Prepare a budget to figure out how much it's going to cost you to get divorced. Some people have found that they can't actually afford to get divorced despite their differences.
Tip 4: Don't Cave In to Unreasonable Demands
Parties that still feel a certain degree of attachment, especially those who are accustomed to playing the role of breadwinner, tend to give in to lopsided agreements. This leaves them in poor financial shape which later leads to resentment. Have a divorce attorney by your side and only agree to what is fair.
Tip 5: Find Alternative Child Support Solutions
Many people who pay child support worry that the money they pay doesn't always benefit the children. This is a common cause of wrangles among the divorced. If you can handle things differently e.g. paying a service provider directly, you can ease much of your troubles.
Speak to a firm such as Workman Law Firm for more help.