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How can I reduce the financial impacts of my divorce?

On Behalf of | Jun 1, 2023 | Divorce

Divorce will usually have a significant impact on your finances. Besides it often being expensive, its components like child support and property division might alter your assets and how you spend your money in the long term. If you want to minimize your divorce’s effects on your finances, the following steps might help.

Know what you have

In general, you can only protect the assets you know you own. Therefore, it helps to know what assets you and your partner have, including cash, savings, bank accounts and 401(k)s.

Be transparent

You might feel compelled to hide some of your assets from your spouse to manipulate asset division to your benefit. However, doing so might lead to costly investigations, and it will likely make you less credible in the eyes of the court.

If you must take steps to protect your money, such as opening separate bank accounts, it is generally best to do so transparently.

Seek professional help

Hiring attorneys, accountants and tax professionals costs money, but their services are often very valuable in the long run. Among other benefits, they might help you file the correct paperwork, avoid missteps and evade tax-related pitfalls.

Be realistic about child support

Some parents consider child support a static expense, but this is rarely the case. When predicting child support payments, it helps to expect various extra items you might spend on, such as your children’s education, health care, special needs and extracurricular activities.

Divorce is complex and can affect your life in many ways. Professionals like divorce attorneys can help you navigate the process effectively, achieve reasonable outcomes, and avoid mistakes that might have lasting and considerable effects on your assets.