Going your separate ways romantically is only part of the divorce process. In addition to this, you must also split your assets, finances and property with your spouse in a way that is fair and equitable for both of you. This can be a challenging and grueling process for many, but with some preparation and professional assistance, you can get through this difficult period.
Tips for how to split your finances in a divorce
- Get everything in writing — There may have been a decorum of trust during your marriage, but during a divorce, you will need to take measures to ensure that your finances are protected.
Get everything you can in writing, including a list of your assets, bank accounts, savings accounts, and any other property that will need to be divided. Having a written record of these assets can help financial planners and divorce lawyers fairly distribute them during the divorce process.
- Avoid selling assets until the divorce has settled — Avoid selling any property or assets to fund a new bank account while you are still married. A divorce court may rule that the property or assets you sold off would have rightfully gone to your partner, meaning you will be responsible for financial liability and any penalties your actions may incur.
It is best to wait until the divorce rulings are finalized before making any financial decisions involving marital property.
- Manage your debts — You and your partner will both be liable for debts incurred while married. You must civilly discuss with one another which of your debts need to be jointly managed and which were individually incurred. For example, you may both agree to share a mortgage payment, but only one of you may decide to accept financial responsibility for a vehicle.
- Get professional assistance — While you and your soon-to-be ex-spouse may feel like you will be able to split civilly, it is always a good idea to hire professionals.
Lawyers can help ensure that your assets are split appropriately in the event that one of you becomes disgruntled or makes decisions the other feels is unfair.
Financial professionals can work with you to help you make sure you are financially prepared for life after your divorce.
Talk to a ProVise CFP® professional about how to split your finances during a divorce
At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you ready to talk to a professional about how to split your finances during a divorce? Contact ProVise today to schedule a complimentary consultation.