Living single again after years of being part of a couple may be a bit of a financial shock, and while you are going through the stress of the divorce, you may not want to face those changes yet. However, if you recognize and plan for those changes during your divorce, you will be able to set yourself up for a better life after it is over. At Kurt Bennett Attorneys, our legal team’s goal is to help clients come through their divorce with the best possible outcome.
The Institute for Divorce Financial Analysts recommends you create an inventory of all your assets and debts. When you put this list together, remember to include retirement accounts, personal property, business interests and any other assets you or your spouse have or think might have.
Include the value of each as best you know. For large or more complicated assets, our firm can work with professional appraisers to ensure that the correct dollar amount is presented to the court. We can also work with a forensic accountant to make sure that your spouse is not hiding assets.
You know that after the divorce you will be living on one income, so now is the time to assess your true income and create a future budget. One crucial aspect of this is to determine – before you go to the negotiation table – whether you can afford to keep the house.
Many people feel an emotional attachment to their home that prevents them from seeing clearly that staying in that living space may create significant hardship. Keep in mind also that the monthly payment is likely to change because you will probably have to refinance any mortgage.
Be forewarned that your single income may not be enough to meet a lender’s qualifications for a mortgage. For some people, a start fresh in a new home may be the best way to maintain financial health. We work with competent and select realtors who are experienced in sales/purchases due to divorce. We help our clients ask the right questions so they can get the right answers that work best for them.
More information about the divorce process is available on our webpage.