Before going through a divorce, one should take steps to secure their financial future. For starters, they should plan to live on about half their income but with nearly three-fourths of their current expenses. While it is important for a person to understand their financial situation, they should avoid moving money around or doing anything that could be construed as trying to hide assets. Similarly, moving out immediately may also not be advisable since it could give the impression of abandoning the family.
Because separations can be emotionally taxing, some divorcees may want to seek out a therapist. A financial planner might be helpful as well. When making decisions on financial accounts and asset division, a divorcee should always try to remain as level-headed as possible.
Property division can be complex. For example, it is important to keep in mind that depending on how retirement accounts are distributed, there could be a hefty tax burden. Splitting a retirement plan must also be approved by the plan trustee. Some people may feel emotional about keeping the family home, but often it is better to sell the property.
While many divorcing couples go through the courts, there are other options available. For example, mediation allows couples and their attorneys to work toward a compromise and to have input into property division as well as child custody. In contrast, a judge’s decision may be final. Even if the family is unhappy with the ruling, they might be powerless to make changes. Through mediation or negotiation, people may also be able to come up with more flexible approaches to property division such as exchanging one asset for another instead of splitting all marital property 50/50.