The Adoption Process

Even though it may feel like a relationship matter, divorce is mostly about parting ways financially. In most cases, divorce is concerned with two people who now will live as single people. Many of those about to go through with divorce are not ready to confront the financial changes. For some important considerations to help you cope, read on. 

Marital Property

You might not readily associate assets like a home or a retirement account with financial matters. However, it's vital to know how marital assets will affect your settlement agreements. Start with identifying what is and what is not marital property. If you and your spouse acquired it during the marriage, it's a marital asset. Only those things are part of the divorce.

True Value

If you and your spouse own a home, it's not surprising that you want to keep it. Homes are often the most expensive of all marital property. However, homes can be costly to own. If you plan to keep your home, calculate how much money it will take to pay property taxes, insurance, upkeep, repairs, and maintenance on the home.

However, if your spouse buys you out, consider what you can do with the money. You can invest it in a smaller, more affordable home that might require less money to run. Consider too how your home might generate income. If you have somewhere else to live, renting the home out might create a positive cash flow.

State Laws 

Everyone getting divorced lives either in a community property or an equitable distribution state. The way property and debts are divided are vastly different for couples living in one or the other. Talk to your divorce lawyer about the laws in your state and how they affect your divorce division of property and debt.

Estate Planning

If you don't have any estate plans, consider taking action once the divorce is final. If you do have some plans, meet with your estate lawyer to update them. Check the beneficiaries on life insurance policies, your will, trusts, bank accounts, and investment accounts.

Protect Your Assets

No one wants to believe their ex is capable of taking advantage of them, even if they are divorcing. However, keep a close eye on the things listed below and speak to your divorce lawyer about a restraining order if necessary:

• Out-of-control credit card use.
• The cancellation of an auto insurance policy without your knowledge.
• The loss of healthcare coverage with no warning.
• A dropped cell phone line on a multi-line account.

For more information, speak to a divorce lawyer.