Ending a marriage can be an emotionally draining process. It can also drain your bank account.
These tips can help you protect your assets during a divorce.
1. Know what you are worth
Most people have a general idea of their net worth but you may have more assets than you realize. Before divorce proceedings start, make sure you know about all of the assets and debts you and your partner have.
2. Establish separate bank accounts
If you and your partner do not already have separate banking accounts, establish them before you divorce. This protects you both against the other making a sudden, unexpected withdrawal.
3. Talk to your spouse about insurance
If you or your children will be relying on your partner for income after the divorce, you need to make sure your spouse has protection, such as life insurance. Make sure you update all of your insurance policies to account for your new marital status and financial position.
4. Consider the tax implications
If you and your spouse have significant retirement savings, you probably have a mixture of taxed and tax-free assets. When deciding who should get what, do not forget to account for the value of the tax savings on some investments.
5. Be wary of sentimental attachments
Emotional attachments to property, such as the family home, can cloud your financial judgment. It is understandable to want some property for emotional reasons but do not let your spouse take advantage of this when dividing assets.
Splitting up the property can be a messy and contentious part of any divorce. Taking these steps can help you ensure you get your fair share.