10 Financial Tips To Help You Through Your Divorce
Divorce takes a toll on your heart. But equally important to how you feel about this major change in your life, there are some serious financial issues that impact divorce, and it’s important to put your feelings aside and address those money issues with a clear head!
- Follow Your Attorney’s Advice: Not only will it save you money to heed your attorney’s advice, it will make things go more quickly and smoothly all around. Whether you’re surprised to hear that you should hire a forensic accountant or private detective, or that you need to stay off of social media for a while, it’s all about reaching the best possible outcomes for you.
- Compromise is a Good Idea: If you’re feeling bitter or resentful, it may really irk you to imagine your spouse walking away with anything remotely close to a win. But the fact is, when you compromise it really can save you time and money, and it could even encourage your spouse to be equally compromising.
- Pretty Much Everything is Up for Grabs: Yup— things that may never have occurred to you can be divided in a divorce—from your frequent flier miles to the hard-earned bonus you got at Christmas. Just because you earned it, it doesn’t make it yours in the divorce.
- Never Conceal Assets: You might think it’s no biggie to “accidentally fail to mention” property or other assets you have. But in addition to angering the court in the event the deception is discovered, you could catch some pretty serious penalties. So put it all out there up front!
- Look at Recent Loan Applications: Are you worried that maybe your spouse is hiding assets? Understand that people report their income in the most generous light on loan applications, not tax filings. So take a peek at any recent applications to glean insights into the real bottom line.
- Have Property Appraised: Learn the actual value of your property so that in negotiations you don’t have to make assumptions. Sometimes collections like, say, coins or baseball cards, may be worth more than you’d imagine. Certainly, the same is true for basic assets like houses, artwork, jewelry and vehicles.
- Learn the Tax Implications: You may be asked to trade off one asset for another—say the family home in exchange for retirement accounts. Be aware of the taxes that will attach to any decisions.
- Change Your Beneficiary Designations: You’re probably not thinking about it as you go through a divorce—but it’s important that you make necessary changes to your life insurance policies and will to prevent your soon-to-be ex from recouping your assets in the event of your death.
- Think About the Timing: Do you want your divorce finalized in the current calendar year, or would you be better off with a January split? In some cases, it may make a difference (think taxes).
- Consider Who Will Claim Kids on Taxes: Who gets to claim the deduction for the kids? Will you switch off every other year? Allow Mom to claim one and Dad to claim another? Will the custodial parent get to claim everyone all the time?
Getting it Right
There are many decisions that have to be made in a divorce. At WiseLieberman our experienced and knowledgeable Boca Raton divorce attorneys are committed to working toward the best possible outcomes for you. To discuss your situation, schedule a confidential consultation in our office today.