How To Take Good Financial Decisions During A Divorce
As a married couple you might have enjoyed a certain sense of financial security. Whether you were being supported by your spouse or you had two incomes coming in, it is always easier when you have someone to share the responsibility with. Going through a divorce could affect your financial situation in unexpected ways and if you are not prepared for them life could get very difficult.
Here are a few ways you can make good financial decisions to help you during a divorce:
- Mutual consent and shared lawyer fees: At the very start of your divorce you could find yourself shelling out a lot by way of legal fees. If you can talk to your spouse and you can both agree on a mutual consent divorce you could even hire one lawyer between both of you. A single lawyer who represents both your interests also means that you can split the cost between you two, or you should consider using a divorce mediator to work out the issues in your divorce. Mutual consent could also avoid lengthy court proceedings which will reduce overall costs.
- Asset division: According to California law any property or other assets bought during marriage are considered community property and should be divided equally between partners. If you decide that you want to keep the house you might have to pay your ex for their share in the house which might not be economically feasible to you. You might want to look at the option of selling the house and dividing the amount equally between both of you.
- Child support: If children are involved you should consider your options for child support. If one parent has full custody an agreement should be worked out where the other parent provides financial support for the children. Even in cases of shared custody and co-parenting and arrangement can be made where the parent who earns more could help the other parent out financially.
- Get insurance: If you are receiving child support and alimony from your former spouse you are at possible risk of them not being able to pay you at any point. Your ex could lose their job or suffer and injury which might prevent them from working for a while making it difficult for them to pay you. You could have an agreement that requires your ex to be insured against such incidents so that they can continue with the payments.
There are many areas you might overlook while getting a divorce which could place a large financial burden on you in the long run. It might help to hire a professional to assess the situation and give you sound financial advice before you make any decisions.
Getting divorced in California can be complicated! Download our free eBook, 18 Important Things to Know About California Divorce to educate yourself on the process.