Protecting your finances during divorce

Divorces are tricky, and there’s no telling how much of your money and assets you could end up losing to your spouse in the end. That is why it’s a good idea to take steps right from the start to protect your finances in preparation for the divorce. One of the first steps to take is to make a careful evaluation of your marital assets, account balances and how much of your money is invested in joint assets.

 

Once that’s done, however, you should not make any large withdrawals or purchases just before divorce proceedings begin, since that can create the impression in court that you are trying to hide your assets.

You should also start hunting around for a new career, or a new source of income, since your old income will likely take a hit from the divorce. If you already have a job, try to think of ways to expand your prospects, either through a promotion or by expanding your business. You’ll need all the money you can get to fight your case in court. Also, don’t try to move out of your house just before the divorce, since that leaves room for your spouse to accuse you of abandoning your home.

While taking stock of your possessions in anticipation of the divorce, don’t get swept up in your emotions. Think about which of your belongings should be sold off to make the most money and will help you start a new life. Also, trying to hold on to an asset just to spite your spouse is fiscally irresponsible. Spouses also need to consider the tax consequences of asset trading during the divorce.

Choosing a reliable attorney is an important part of the process as well. He or she will be your most vital ally through the divorce every step of the way.

 

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