How to Save Yourself from Financial Hell in a Divorce
Divorce is a time where the two parties are scrambling to mark the assets that they want. They will fight tooth and nail to obtain it. Their mission becomes saving themselves from financial hell. They don’t have to fight with each other to get the assets they want. They can save themselves from financial failure if they do the following things before the divorce proceedings through divorce mediation or litigation begins:
- Negotiate an Equitable Settlement
Most of people think that equitable means 50/50? However, does it always mean that? In some cases, it means the total opposite, as the other person may get away with getting more than you. This means you have to secure your chances of getting a fair division of assets in return after the divorce to secure your financial future currently and down the line.
In order to play it safe, you need to talk to a Certified Divorce Financial Analyst to talk to you through the process, advising you on what he or she deems as a fair ruling between two divorcing partners. With that information in hand, present your needs to your partner during your divorce mediation session.
- Save Money
You don’t want to overspend on things, but save money instead. You can consult a financial advisor to assist you in establishing a doable budget for the month.
- Think About Whether You Can Really Keep Your Home
If your partner is willing to give you the home, you should talk with a financial advisor so he or she can tell you if you can realistically afford it or not.
- You Won’t Get Everything Your Desire
Do you plan to fight with your soon-to-be ex-partner down to every last penny? If you do, you will be spending a lot of time in court fighting over things like who gets the furniture or the dishes. These types of things are not worth it. If you really want to argue over these things, do it during divorce mediation, as it’s a better choice to vent your concerns in a more casual environment.
- You Should Protect Your Retirement Assets
A Qualified Domestic Relations Order should be stated as a requirement in your divorce judgment to divide retirement assets properly, and should be filed immediately after you complete your divorce.
- Don’t Use Your Debt Card too Much
You and your spouse need to eventually close all the accounts that you and your partner opened up together. Most importantly, don’t forget to get a copy of your credit card statement.
To learn more about the divorce process in California and how mediation can help, please visit our page, “What is Divorce Mediation.”