The spouse that has not been in charge of managing a family's finances
is generally less prepared when entering into divorce settlement negotiations
since they may not even be aware of all of the places the family has money.
This financial knowledge has serious long-term benefits since it allows
both parties to fairly negotiate, but it can also help a person gauge
how their financial situation is changing and what their long-term financial
needs might be.
Common Financial Oversights in Divorce
There are some common places where finances are usually overlooked. These
areas are often important to address when developing a divorce settlement.
Some common financial concerns to be addressed in the divorce process are:
- Understanding immediate cash flow needs and using this to determine which
assets would be the best to obtain in a divorce
- Settling all joint liabilities and ensure that all accounts and credit
is separated prior to the divorce
- Consulting with financial advisors about the taxes on some assets and whether
the person that receives that asset is financially capable of paying it
or if the asset holds plenty of long-term financial gain
- Examining tax returns to determine if there are any tax assets that must
be distributed in the settlement
- Being familiar with the other spouse's retirement benefits and how
these are transferred in the event of a divorce
By taking time to familiarize themselves with the family's financial
outlook, a person can help to create a solid foundation for themselves
moving forward. Just because someone did not handle their family's
finances does not mean that they deserve to be penalized.
If you are going through a divorce and need help determining a fair divorce
settlement, contact the Meyers Law Group. Our attorneys can help create
a complete financial picture and work with you to determine how assets
should be best divided in your divorce.