How to Be Financially Prepared for Post-Divorce Life

Divorce is stressful and it is rare that anyone walks away financially unscathed. Splitting up means leaving a combined household and having to set up two different homes and lives. It also means assets and debts will be divided, and despite the best efforts of the court, individuals often feel shortchanged. However, there are some steps a person can take in order to take less of a financial hit in a divorce. 

Know Your Assets and Debts (And Your Spouse’s)

Not every husband or wife is totally honest about what they own or what they owe. If you are faced with divorce, one of the first things to do is account for all bank accounts, investments, retirement plans, insurance policies, etc. that your spouse has. You also need to know where you stand on debt, like credit cards, taxes, and medical bills. One way to go about finding any hidden items is by getting a copy of your spouse’s credit report. If there is anything you do not recognize, you will need to dig deeper, perhaps with the help of a forensic accountant.

Know Your Entitled Funds

If you brought money into the marriage and kept it in your name, you may be able to keep all of it, but if you put it into a shared account, it may be divided. If you had an inheritance, personal savings, or other assets pre-marriage, you will likely be allowed to keep them, as it is not considered marital property. 

As for your retirement or 401(k) accounts, whatever you put in during the marriage will be divided, unless you reach a different agreement with your ex-spouse. That being said, if your spouse has a bigger retirement plan than you, make sure you have all the information needed to get your rightful share of that marital property. For certain types of accounts, you will need to get a QDRO (Qualified Domestic Relations Order) to split the plan.

Plan for Your Future

If you have been a homemaker or made less money than your spouse, you may receive spousal maintenance (alimony) after your divorce. In most cases, alimony runs out after a few years, so you need to be prepared for when that day comes. 

If you have been on your spouse’s healthcare plan, request to stay on it through the divorce, if needed. Do not wait until the last minute to ensure that you are covered when the divorce is final. Take care of your needs, and any children that you and your spouse share.

Contact an Experienced Orland Park Divorce Attorney

Divorce can be complicated and difficult, but it does not need to be financially devastating. The attorneys at Anderson & Associates, P.C. can guide you through the process to help make sure you get what you need to begin the next chapter of your life. To speak with a knowledgeable Tinley Park divorce attorney, call 708-226-9904 to set up a free consultation today.

Source: 

https://www.cbsnews.com/news/10-steps-to-avoid-losing-your-shirt-in-a-divorce/