A Guide to the Most Common Financial Issues of Divorce
Divorce stresses people emotionally, mentally, physically, and also financially. As divorce proceeds, both the parties are forced for making and accepting decisions that will have a major impact on the current and future financial situation and security. It is not wise to go into them uneducated and alone. Many people consult a family law attorney for their divorce proceedings. Some people also engage an expert financial planner for this purpose. ,
Dividing Property in Divorce
In a divorce, generally joint marital assets are equally divided between the spouses. Also, there are many people who reach a relatively amicable agreement for the division of property. In case there is disagreement for one or more items, some fair methods are there to decide who gets what.
Bartering is one of the most common method where a spouse takes certain items as exchange for others. For instance, the wife may take the boat and furniture in exchange for the husband getting the car. Also people use the method of division of property where they sell the marital property and equally divide the proceeds. There are many instances where mediators or arbitrators may also be used. People can avail Family Mediation Service in in such cases. You can find a Family Mediation Service provider in who can assist through the process.
You must familiarize yourself with the laws governing the division of property in the state.
Dividing Debts in Divorce
There are often situations where deciding the party who will be responsible for any debt the couple has incurred during the marriage is even more difficult than dividing the property in a divorce. For doing the same, there is need to clearly know how much one owes.
Even in case a person trusts the spouse fully, they must do this favor to order a joint credit report from every credit reporting agencies. There have been instances where people have run up in debt even without the knowledge of spouse, especially when they are in the process of contemplating leaving the marriage. If you overlook this step, this could cost years in debt repayments.
You should go through the credit reports for identifying the debt that is shared and the debt that is in the spouse’s name only. At this juncture, it’s very important to stall the growth of debt any larger while the process of getting divorced is moving ahead. Some people also find it reasonable to cancel most of their credit cards, leaving only one for use in case of emergencies.