What a Divorcing Women Should Know About her Marital Funds
To many people ‘Divorce is as painful as death itself.’ However, that doesn’t mean to make financial mistakes by becoming emotional at the negotiating table. When it comes to distributing the marital properties, couples think mainly about the biggest ones. Who is going to get the cars, houses etc., concern them the most? By giving too much attention to such tangible items, divorcing women lose out on the cash they otherwise could have possessed.
Get a renowned divorce financial advisor to inherit huge cash from your divorced partner. Taking professional assistance is recommended when you’re not agree with your soon-to -be -ex-husband’s way of splitting the property. In such a situation, you need to go to court where the judge will decide how the property will be distributed equally between you two. This type of division is known as equitable distribution.
Contradictorily, if you hold with your husband’s way of dividing the finance, an agreement will be documented known as Marital Dissolution Agreement.
What Factors Court Considers while doing Equitable Distribution?
In accordance with the law of property division in divorce, the judge orders a fair distribution. Even in this kind of distribution, sometimes, one spouse gets more. However, the judge considers it fair by counting on the evidences provided. He carries out the reasonable distribution by looking at:
- Financial requirements of each spouse, their employability, and their earning limits
- Both the spouses’ physical and mental health, and vocational skills are also considered
- The value of individual property of the spouses
- If anyone has contributed directly or indirectly in enhancing the other’s earning
- How long the marriage has lasted
- Estate the spouses have owned separately at the time of their marriage
- Economic stability of each spouse during the distribution
- Tax each spouse has to pay
- Availability of the cash to each spouse derived from Social Security
- Equities between both the parties
Why Take Out Your Husband’s Life Insurance?
Unhappy and unexpected circumstances can engulf you at any time. Without life insurance policy, coping with such a catastrophe will be tough. Unless your ex-husband’s financial obligations are met, his life insurance will help you immensely. As for instance, if he dies before the execution of your QDRO (Qualified Domestic Relations Order), your retirement benefits can come in danger. To shut the doors of uncertainty, a long-term life insurance policy is significant. Consult your financial advisor about how to include such a policy while closing the settlement agreement.
Consider your own demise. Sounds weird?
Your untimely death may put your kid’s financial condition at risk. Who is going to look after their financial issues in your absence? Generally, women have the luxury of pushing this responsibility to their ex-husband’s side without worrying. But, unfortunately, many women can’t do this. These women don’t have the advantage when their ex-husbands are spendthrifts, not willing to take the kids’ responsibilities, and are not independent financially. In case, your ex-husband has remarried, he may not be able to take financial responsibilities of your kids. Hence, with thorough planning make the necessary arrangements in advance.
What Financial Records You May Require?
Once the divorce petition is filed, start assembling the financial records. Organize the documents beforehand to save both your time and money.
Here’s a financial documents checklist you may need afterwards. Have a look at it.
- Stock portfolios and options
- Account statements of retirement
- Statements on property tax and credit card
- Employment contracts
- Life Insurance policy
- For the last 3-5 years, individual and business income tax returns
- Evidence of you and your spouse’s present income
- Prenuptial and separation agreement
- Documents related to loans
- All bills including the utility ones
- Appraisals of personal and real property
- All your personal possessions like jewelry, clothes, home furnishing, and others
Try to get a credit card not only to deal with your daily expenses but also to set up your credit. Your credit card will support you especially if you’re a homemaker and are not earning. Have it when you are earning less than your husband. In case, your other funds are not available, it will ensure a comfortable living.
How Opening New Savings Account Helps?
Are your joint accounts enough? Probably, not.
You should have a savings account in your name in another bank. Withdraw 50% of your joint account to deposit them in your newly opened savings account. However, don’t expect much interest on your deposited money. But to get high interest, never block your money in some time accounts.
Disclaimer: This article is for information purposes only. Readers are advised to consult with their legal advisors before attempting to utilize any of the information in this article.