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How to Preserve Your Financial Integrity Through a Divorce

Posted by : Premraj | Posted on : Monday, August 24, 2015

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Divorce is not something that any couple wants to do. It’s typically a decision that’s been reached after months or years of struggling to make the relationship work. However, when the choice has been made and the plans have been set in motion, the real struggle is just beginning.

Aside from the emotional trauma that occurs when a marriage is ending, there are the obvious legal and financial aspects of the marriage that must be dealt with as well. The division of assets can be a touchy situation and sometimes brings out the worst in people.

While a divorce will never be easy, there are a few ways that can ease the transition and help calm the nerves and anger of the parties involved, especially when it comes to the division of assets, both liquid assets and things like property, retirement accounts, and more.

The Division of Joint Bank Accounts

If you and your spouse are able to rationally divide your joint accounts then you’re already on the right track to a relatively simple divorce. If one or the both of you are not able to agree on and equitable division, then your lawyers must step in and take this case before a judge.

Divorces are not cheap, and the longer the litigation process goes on the more expensive it becomes. A fair and rational decision between the two of you will not only spare your feelings but can save you more money in lawyer’s fees. If necessary, you can meet with your respective lawyers outside of the courtroom to let them assist you in the sometimes confusing process of asset division.

Any debt needs to be divided too, so be sure to take that into consideration. If your case goes before a judge he or she may rule that joint assets be used to pay off existing debt, after which the remaining balance is divided.

Choose Mediation Whenever Possible

Mediation is a process by which the parties to a divorce can attempt to come to an agreement without taking the matter to court. A professionally trained mediator works with both parties to help them come to an agreement on their own.

Mediators are specially trained to assist in conflict resolution. They avoid taking sides or giving advice; they simply guide the parties to a solution that is mutually acceptable. Mediation does not work for everyone, but it’s always worth a try. A successful mediation outcome can not only save you thousands of dollars in legal fees and courtroom time, but it can help both parties feel more in control of the situation and feel more satisfied with the outcome.

When the Divorce Is Final

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By the time the divorce is final you’ll have typically divided all assets and are free to move on. However, it’s beneficial to do one final checklist. If you haven’t already, obtain a copy of your credit report and check all of your accounts. Be certain that any joint accounts in question have indeed been closed and that any accounts that became the property of the other party reflect that change as well.

It’s estimated that after a divorce a woman’s standard of living can decrease by as much as 25 percent, even if she receives alimony. If this is your experience, it might be wise to seek the advice of a financial planner. He or she can help you plan a budget, manage any investments you might have, and generally give you an idea the best way to proceed with the financial aspects of your life.

It’s also a good idea to pay a visit to your insurance agent. If you and your spouse had any joint life insurance policies that were cancelled during the divorce, you may want to take out a new policy. Your insurance agent can assist you with choosing the best plan.

Divorce is never going to be a simple procedure. They are often long and drawn out processes that are at best uncomfortable and emotionally exhausting at their worst. However, with the aid and guidance of good attorneys and mediators, it is possible to come through the divorce process with your finances intact and as ready as you can be to start your new life.

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