If you are considering divorce, or have announced your intentions to dissolve your marriage, chances are that you have received a great deal of unsolicited advice. Unfortunately, advice given by former divorcees is quite polarizing, and little of it focuses on what to do before filing a petition. As such, we take pride in counseling our clients so that they avoid substantial money mistakes when going through a divorce or considering a settlement agreement.
With that, we offer a few things to consider as you prepare to divorce.
Think about what your budget will be – It is essential to know how much you will need to maintain your household as well as your individual obligations while the divorce is pending. After all, it is usually more expensive to maintain a household on one income. Additionally, your monthly (or weekly) expenses still continue before an order is issued.
Will your tax obligation change – Beware of acquiring property that has appreciated in value. If you are getting property as that has increased in value, chances are that may be subject to capital gains taxes. There may be instances where acquiring certain property may not be in your best interests. Simply put, knowing what the tax implications are can help you properly value what you are entitled to.
Stay on top of your credit report – It is not surprising to discover charges you are unfamiliar with, especially if your spouse has opened joint accounts with banks and credit issuers without your knowledge.
What about bonuses – Your soon-to-be ex-spouse may realize an end-of-year bonus. This may be helpful in figuring out what spousal support may be.