How To Handle Your Divorce Finances
Handling your divorce finances can be tricky. You have to understand how your assets will be divided between you and your former spouse according to the laws of your state. And you also have to come to an agreement to these terms with your former spouse. This is a complicated process, and it is a good idea to take some time to understand just how your divorce finances work.
Learn Just How To Best Handle Your Divorce Finances
Did You Sign A Prenuptial Agreement?
A major part of how you will have to handle your divorce finances depends on whether or not you and your former spouse signed a prenuptial agreement before you got married. If you’ve never heard of a prenup before, this is a document you and your soon-to-be spouse sign before you get married.
It basically says, in case you two ever divorce, you will leave the marriage with what you brought in and your spouse will leave with what they brought in. If you signed a properly drafted prenup, this document would override state and local laws in terms of how your finances are divided up. Usually, you will keep everything that is yours and your spouse will keep everything that was theirs.
Update Your Bank Accounts
When it comes to your finances through divorce, you need to update your bank accounts. There is a good chance that you and your spouse have at least a couple of joint bank accounts. One of the first things that you should do when handling your divorce finances is to open a new checking and savings account for yourself.
You should start using these new accounts from now on because your old ones will have to be divided between you and your spouse. In order to start using your new accounts, you might have to redirect any direct deposit payment, such as your paychecks or automatic bills. Dividing up your finances early in the divorce will make the rest of the process go much more smoothly.
Handling Your Property
How you will have to handle property and other assets depends on the state that you live in. Most states are considered equitable distribution states. This means that assets are divided between the two spouses in a fair manner. This does not necessarily mean an even split though; there are several factors that come into play such as age, debts, income, standard of living, and more.
On the other hand, some states are community property states. This means that any property purchased or acquired during the course of the marriage is to be split between the two spouses evenly. Property and assets owned before the marriage are not split, however.
Look At Your Retirement Portfolio
If you have been saving up money for retirement, you need to review your assets. Take a look at any life insurance policies that you might have and make sure that you are the proper beneficiary. If your former spouse was listed, change the beneficiary and remove your spouse.
If you do have to change it, you should list your beneficiary as your children or another family member you trust. If you are close to retirement, wait until after the divorce is finalized. Otherwise, your retirement accounts – including your 401(k) – could be divided between you and your former spouse.
Are Kids Involved?
Divorce finances are a lot more complicated when there are children involved. Things can still be resolved amicably, but you have to come to an agreement on how to share custody and financially support the children until they are adults. If you are unable to come to an agreement, you might have to get a court order to ensure that child support and custody agreements are maintained.
Get A Divorce Lawyer
When it comes to a divorce and the divorce finances, you should always get a lawyer. If you and your former spouse are unable to come to an agreement on how to resolve the divorce, you might have to go to court to get things sorted out.
If this happens, you want to have legal representation so that you do not sign an agreement that you do not understand because this could end up hurting you. Divorce agreements are legally binding, so you need to make sure you understand them before you sign anything.
While You Handle Your Divorce, Use Installment Loans For Emergencies
Getting a divorce is stressful and complicated for your financial situation. If you find yourself in a situation where you need some emergency cash to tide you over, one of the options that you can consider is applying for an installment loan from Carolina Title Loans, Inc. today. You can get started applying for an installment loan by calling your nearest South Carolina installment loan location.
You can also fill out the easy online inquiry form to send us your basic information immediately. One of our installment loan representatives will call you back and help you schedule an appointment so we can assess your items and help you finish the application process. In thirty minutes you will find out if you’ve been approved and for how much.
Get Through Your Divorce With These Tips
Divorce finances are a complicated subject to have. There are a lot of assets that you will have to divide between you and your former spouse, so it is a great idea for you to get a full understanding of how you could handle your divorce finances. And if you need help with any emergencies you run into while you are going through your divorce, fill out the online form for an installment loan today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.