It is no surprise that a divorce can carry some heavy emotional consequences for everyone involved. Couples who are at the point of ending a marriage are forced to deal with a number of different things like child custody and spousal support.
But as we've seen in previous posts, another source of contention can involve property division. The longer a couple has been married, the more assets they acquire both individually and as a couple. In the event of a divorce, are there ways that both spouses can protect their assets?
Property division has many financial implications. In some instances it means dividing up the property evenly so that each spouse walks away with half. In other situations the property is divided up equitably.
But as one financial advisor notes, when facing a divorce there are some questions you can ask that can help you prepare for the financial impact that is likely about to hit:
- How will the divorce impact your cash flow?
- What sort of anticipated financial obligations will you have to deal with?
- Is there child support or spousal support to take into account?
- What is the status of your financial accounts? Your spouse's accounts?
- How will your insurance coverage change after a divorce?
These questions and more can surface when trying to determine how to divide up the assets. It is important to remember that the divorce impacts not only the current but also the future financial situation.
Divorce is complicated and requires a bit of planning. But if you speak with someone who understands the divorce process and can help you determine the next step, the process may go more smoothly.
Source: Huffington Post: "Facing a divorce? Protect your finances," Suzanna de Baca, July 27, 2011.