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Divorce is seldom a mutual agreement. Someone’s feelings are bound to get hurt and when you mix this pain and regret with the stress and technicalities of a divorce, lives can be destroyed. It is in our nature as human beings to lash out and seek revenge. Divorce can make people act out in ways that may not reflect who they really are. It is for this reason, that you must protect yourself and your assets when a marriage is dissolved. Here’s your guide to getting everything in order and making sure your assets are protected in a divorce.
Get a lawyer and don’t make the mistake of sharing one. Even the most amicable divorce has the potential to get ugly when it comes to the financial burden. Do not trust anyone to look out for your best interests except you and your lawyer. You don’t have to play dirty, but you need to protect yourself. Meet your attorney to discuss and learn about the laws in your state concerning property division. Each state sets its own divorce laws and these laws can differ slightly or greatly. Professional legal advice is the only sure way to learn yours and your spouses legal rights. Compile all the financial records that you can. This will include details on your separate and joint bank accounts, investments, pensions, expensive community property like cars and the appraised value of your home. Identify, photograph and get proof of all your family heirlooms. Heirlooms that were given to you and not both you and your spouse by your family remain your property in a divorce. Try to photograph them in the shared residence before you remove them and obtain written proof from a relative stating it was passed along to you and when. Legal wills are the best proof of this.
Appraise your assets. Your interest in some assets needs to be professionally appraised so that you receive your fair share of them. Hire a professional appraiser for all of your shared assets and have valuations done on any expensive items like jewelry and antiques. If you or your spouse operated a business during the marriage, that business needs to be appraised as well as both of your retirement plans. Community property is a bit of a free-for-all. Community property denotes anything that was purchased together during the marriage, like furniture, books, household items and cars. In general, you both have a right to these things. Keep in mind that what you take in community property, you take at its fair market value rather than its replacement value. In divorce negotiations, discussions will be focussed on the fair market value of items, which is what they are worth now. Know your rights. Contrary to popular belief, husbands can receive alimony. In today’s society, it is becoming more and more common for a woman to pay spousal support. One-third of wives are the primary financial support for the family and though the state laws differ, it is typical for dependent spouses to be granted temporary maintenance based on the length of their marriage. If you have moved out of the marital residence voluntarily and there isn’t a court order against you, you are legally allowed to return and remove your belongings. If your spouse has changed the locks, it is in your right to hire a locksmith to let you in. The same goes for the vice versa. Cancel any joint credit cards. You are liable to the credit card company for any amounts charged on the card whether you made them or not. Consider whether to close all joint bank accounts and investments, but don’t do anything until you’ve discussed your options with your lawyer. In general, if you believe that your spouse may take joint assets and spend or hide them away, then you have a legitimate reason to remove them.
Don’t let your ex trash your credit. You might be surprised at how quickly your credit can be destroyed, so make sure to get a handle on loans and shared assets as quickly as possible. Even if your debt is allocated in the official divorce decree, make sure that your ex is following up on their part of the payments. Creditors don’t care about the circumstances behind a debt; if a debt is incurred in a joint account than both spouses are responsible for paying it off.
Learn what your spouse has been doing with the community property. Are there outstanding parking tickets on the car, has large sums of money been debited from your bank accounts or any liens been placed against your shared real estate assets? Consult a tax professional at the start of your divorce filing. Neglecting the tax man is one of the leading mistakes in divorce. If you were still married on December 31st of the tax year, you should still file a joint return, but if you were divorced as of December 31st and you qualify, you should file as head of household.
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