For many people, divorce is more than a simple legal process with papers that has two signatures on them. Divorce can be a very challenging time, and this transition can affect almost every area of your life; physical, emotional, psychological, domestic, financial, health, social and more.
Whatever choice you make at the start of a divorce can leave an impact that can last for a very long period of time, even after the divorce is finalized. During this time period, it is important that you sit down and properly plan and prepare for this decision and its process.
Taking smart steps, working strategically will set you up with a happy future and a success that you can be relaxed with.
Making key mistakes very early in this process will not only complicate things but also make everything harder for yourself; you will find it difficult to adjust in your life after divorce all on your own. This is why it is important that you set off on the right foot with these tips on how to plan for divorce.
How to plan for divorce; tips
1. Hire a professional
Instead of trying to solve everything yourself it is better that you leave your assets in the hands of a professional lawyer who is aware of what they are doing.
A lawyer will make sure that whatever agreement you settle on contains the interest of both parties legally and financially.
Similarly, it is also important that you hire a professional therapist that will help you stay in control of your emotions. It is no secret that divorce can be extremely expensive but to ensure that you have long-term happiness and protection you must spend your money in hiring an expert.
2. Research Insurance
You may have had some sort of life insurance before the divorce.
However, this will have to change. This change is important because now your beneficiary will not be your spouse but will instead be your children. You should also think about how to take care of your children and yourself in case your ex-spouse passes away, and you don’t have enough money to pay and support your expenses.
3. Manage your debts
If you have any joint credit card financial statement, bank accounts or joint mortgages then make sure that you re-title them or cancel these accounts altogether.
This refinance is important as only the accountable spouse will be responsible for the payments and mortgages.
4. Take good care of your house
Before the finalization of divorce use the money you have to pay for repairs and maintenance around the around the household.
If you decide to sell out your house, it is important that you do before your divorce is finalized so that the selling cost can be a joint responsibility instead of a burden on a single person.
5. Fight For what you deserve
No matter how messy you think the divorce can get, don’t back down until you get what is owed to you.
For example, in California, you are permitted to 50% of the asset. It can be really enticing to give in and back down so you can get over with the divorce but it is advised that you secure your financial future.
6. Rewrite your estate documents
Before modifying your wills or trusts make sure that you sit down and talk to your attorney. Also, use this time and space to plan out your taxes so that they are decreased for your future.
7. Transfer funds as soon as you can
Once you and your partner have decided on the amount, you will receive from your spouse’s retirement.
Make sure that you get your paperwork done right away along with your transfer.
In case your spouse passes away before the paperwork can be completed you will be missing out on the funds.
8. Start to save up
Once you have been divorced your retirement will be halved, so it is crucial that you start to save your money each month to make up for the money you are losing.
9. Set your money aside for taxes
Your alimony will be taxed so make sure that you set your money aside and pay your taxes monthly.
You can also ask your employer to hold back money from your monthly check so that you no longer have to make quarterly payments. Also, keep in mind that if you are making the alimony payments that you can claim an exemption for every $2,500.
Divorce is a very difficult time for couples and as they part they must focus on their future and their well-being. With the above-mentioned points, you will be able to plan a proper divorce and take care of your children and yourself. Instead of letting emotions take its toll to try to plan strategically and make decisions smartly.
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