Most couples who get married believe they will beat the odds and stay married forever. Unfortunately, half of them will be wrong. Divorces are hard on all the parties, and it can be difficult to think coherently enough to plan for the future. Experts say that unless this is done, real financial hardship may be down the road. You deserve your fair share of the marital assets. It helps to develop a divorce financial planning worksheet for the three stages of the dissolution process.
When you first sit down with your attorney, the question of finances will come up. You will be asked to gather as much documentation as possible to show all your assets, expenses, and income. This will include all the real estate owned, stocks, mortgage details, and six months of bank checking and saving account statements.
You will need your 1099s and W-2s as well as tax returns for previous years. If you are old enough to receive social security, you need that documentation. Pension payments and child support you are currently receiving as the result of a previous relationship must be included. You should have an expenses worksheet detailing every monthly obligation you have, like house and car payments, utility bills, insurance, entertainment, and all medical expenses your insurance doesn't cover.
It may take several meetings between your attorney and yourself and your spouse and his attorney in order to iron out the details regarding joint assets. Everything must be itemized so everyone understands what's at stake. Included in this will be any retirement plans.
If there are business interests being transferred, you will want to structure the transition in such a way that you don't forfeit tax benefits. Many women choose to accept the first settlement agreement they are offered. This is almost always a mistake. They end up leaving money on the table that they have a right to and would have been a big help to them down the road.
Once you are free of the marriage, you need to be realistic and practical about your economic situation. Worksheets can be invaluable for tracking your credit score and managing your assets and liabilities. You will need to redo your will and change the beneficiaries on your insurance. Titles to the house, car, and any other tangible assets have to be put in your name.
Experts advise newly single individuals to open new checking and savings accounts. They say closing all old accounts is a good idea, even the ones that were in your name only. Spouses often have account numbers that make it possible to access the old accounts and create mischief. You should have a meeting with your tax advisor to discuss minimizing any tax liability asset transfers may cause.
Divorces are not pleasant. You want to protect yourself and your future and be fair at the same time. The more organized and realistic you are about your finances, the easier it will be to start your new life.
When you first sit down with your attorney, the question of finances will come up. You will be asked to gather as much documentation as possible to show all your assets, expenses, and income. This will include all the real estate owned, stocks, mortgage details, and six months of bank checking and saving account statements.
You will need your 1099s and W-2s as well as tax returns for previous years. If you are old enough to receive social security, you need that documentation. Pension payments and child support you are currently receiving as the result of a previous relationship must be included. You should have an expenses worksheet detailing every monthly obligation you have, like house and car payments, utility bills, insurance, entertainment, and all medical expenses your insurance doesn't cover.
It may take several meetings between your attorney and yourself and your spouse and his attorney in order to iron out the details regarding joint assets. Everything must be itemized so everyone understands what's at stake. Included in this will be any retirement plans.
If there are business interests being transferred, you will want to structure the transition in such a way that you don't forfeit tax benefits. Many women choose to accept the first settlement agreement they are offered. This is almost always a mistake. They end up leaving money on the table that they have a right to and would have been a big help to them down the road.
Once you are free of the marriage, you need to be realistic and practical about your economic situation. Worksheets can be invaluable for tracking your credit score and managing your assets and liabilities. You will need to redo your will and change the beneficiaries on your insurance. Titles to the house, car, and any other tangible assets have to be put in your name.
Experts advise newly single individuals to open new checking and savings accounts. They say closing all old accounts is a good idea, even the ones that were in your name only. Spouses often have account numbers that make it possible to access the old accounts and create mischief. You should have a meeting with your tax advisor to discuss minimizing any tax liability asset transfers may cause.
Divorces are not pleasant. You want to protect yourself and your future and be fair at the same time. The more organized and realistic you are about your finances, the easier it will be to start your new life.
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