Planning to File a Divorce? 4 Financial Considerations You Need to Make First

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In advance of getting a divorce, there are many things to think about and plan for that are both emotionally and physically taxing on an individual. First and foremost, if there are children, they should be the major consideration. Their safety and mental wellbeing should be considered above all other issues.

Before searching for divorce lawyers near me, consider counseling for the entire family. It may not change the outcome of divorce, but it will provide solid advice on how to deal with a separation and disruption of the family unit.

Below are 4 financial considerations you should take care of before filing for divorce.

1. Current Assets

Dividing the current assets can be difficult if you are unaware of their value. Your lawyer can help you with determining which assets you should keep or try to obtain, and those you can leave for your partner.

The idea is to make sure both partners are equally compensated with the marital assets. This is often a difficult process for some of the assets are valued for their actual cost while other items have a perceived value due to their sentimental importance.

2. Credit and FICO Scores

Chances are that the accumulated credit card debt is in both your names. If this is the case, start by notifying the credit card companies of your pending divorce. In your agreement through the divorce court, your attorney will make a motion for the debt to be split equally and each party to pay their fair share. It is important to send each credit card company a copy of the divorce agreement so they know who is paying what.

You may want to get your own credit card if you can to start to establish your own credit score. You could start with a gas credit card or a local department store card. Just be sure to pay each month on time to keep your own credit score in the high range.

3. Taxes

At some point, sooner rather than later, you and your former spouse will need to discuss taxes. This will be important if you have children as to whom will be able to claim them as a deduction.

Another important tax issue is the marital property, including but not limited to big ticket items such as the house, cars and any other property considered of high value. You and your former partner may need to file together instead of separately that first year after the divorce. A qualified tax attorney will be able to advise you on what is best for your filing.

4. Insurance

 Insurance is similar to taxes and credit card debt in that it will be a combined item in both parties names. If you are talking about health insurance, and there is only one policy, arrangements could be made to the other party to contribute to the monthly fees. Life insurance needs to be reevaluated and a decision on who the beneficiary will be going forward.

Divorce is not an easy thing to go through. When you have all the information about financial situations ironed out, it becomes a little less stressful.