How to Protect Your Finances During and After a Divorce

How to Protect Your Finances During and After a Divorce

March 4, 2021 Off By Glespynorson

Divorcing your partner is the first step toward a brighter future. While you might have once loved your partner deeply, your feelings might have changed throughout the years. However, the wrong move during proceedings could result in you losing money that is rightfully yours.

If you want to enjoy financial security once a divorce is finalized, you must take the steps to safeguard your money as much as possible. Read the following advice on how to protect your finances during and after a divorce.

Find an Experienced Lawyer

The best financial defence is a good legal defence. It is for this reason that you must find an experienced divorce and family law attorney. If you are filing for divorce this year, Sean Smallwood, P.A. cannot only remove stress from the process, but the firm can provide informative advice regarding the division of assets, debt, and the marital home. Plus, they could estimate the child or spousal support sum you could be entitled to after a divorce.

Learn About Potential Tax Implications

Many couples are often focused on the divorce process and securing custody of their children, which could lead to them overlooking potential tax issues. To save yourself potentially thousands of dollars, you must consider:

  • Who will claim Head of Household status?
  • Who will receive tax exemptions for dependents?
  • If maintenance fees are tax-deductible

If in doubt, talk to a certified public accountant for advice.

Talk to a Financial Advisor

As emotions will be high during a divorce process, you might make quick financial decisions without thinking them through. Protect your money by consulting a qualified financial advisor for informative advice. They will help you to make smart, rational money choices to maximize your finances.

Consider Selling Your Marital Home

While you might have an equal right to the marital home, you might not have the finances to afford or maintain the property. Rather than handing over the house to your other half, it is a wise idea to sell the property. You can then use the money from the sale to start afresh elsewhere.

Take Out Life and/or Disability Insurance on a Settlement

If you are awarded child support, alimony, or a property settlement during a divorce, you might be wise to take out life and/or disability insurance on a settlement. It will provide financial coverage if your ex-partner prematurely passes away or experiences a disability that could affect payments. It is a worthy consideration after a divorce, especially if you are raising children.

Update Your Estate Plan

The last step you must take is to update your will, insurance policies, and retirement policies. If you do not change your estate plan following a divorce and you pass away, your ex-husband or wife could become a beneficiary of your finances, property, or policies.

If you follow the above advice, you could improve your financial security following a divorce. It could help you move on from a relationship at a faster rate and enjoy a brighter future.