What financial decisions will I have to make during a divorce?

money wedding ring

If you’re considering ending your marriage, it’s crucial to consider the financial decisions you must make during this complex legal process. The choices you make can significantly impact your financial stability. That being said, you should consider enlisting the help of a knowledgeable Pensacola Divorce Lawyer who can help you plan your financial future.

What are some of the most important financial choices couples have to make when undergoing a divorce?

Sorting out your assets and liabilities is the first step you should take during your divorce. Determining what you own is crucial to clearly understand what assets are considered marital property and separate property. Martial assets are subject to equitable distribution, meaning they will be split fairly between a couple but not necessarily in an even 50/50 split. To safeguard your personal property and maximize your chances of receiving a fair portion of your marital property, you must collect critical legal documents such as bank statements, tax returns, pension and mortgage documents, insurance policies, an inventory of valuable property, and all accumulated debts. Ultimately, it would be best to determine what you own to ensure that your hard-earned assets are safeguarded during property division.

In addition to determining what you own, you should decide what to do with the house. Determining who keeps the house or whether you should sell the home and split the proceeds can be challenging. If your former spouse has no interest in retaining the home, you could consider buying them out of their ownership. Determining whether keeping or selling your home is the best financial decision for your specific circumstances is crucial.

Moreover, one crucial decision when going through a divorce is what to do with your pension plan. Splitting a pension is a significant financial decision; annuities can provide long-term financial security to individuals. Therefore, some couples may decide that one spouse can keep the family home while, in exchange, the other spouse receives the pension. However, it is imperative to note that pension plans are usually in pre-tax dollars, meaning their value must be adjusted to ensure a fair division. Ultimately, there are numerous financial decisions couples must take into account when divorcing to protect their financial security.

Why is it essential to prepare your finances?

Everything you have grown accustomed to will change when you decide to end your marriage, including your financial situation. Therefore, it is imperative to plan to safeguard your financial security. Do not let your emotions get the best of you. Understandably, emotions run high, and conflicts are bound to arise. Still, it’s essential to keep them in check to make rational decisions on the terms that will apply to the termination of your marriage. For instance, you should not fight tooth and nail to keep your family home if you cannot afford it alone. Ultimately, preparing your finances to protect your financial security would be best.

If you’re facing a divorce, it is in your best interest to contact a trusted lawyer from The Law Office of James M. Burns, who can help you safeguard your hard-earned assets. Our firm is prepared to represent your interests today.