Egolf Ferlic Martinez Harwood Attorneys At Law

Solving Your Problems With Effective Advocacy

  1. Home
  2.  » 
  3. Family Law
  4.  » 
  5. Divorce
  6.  » Financial knowledge is crucial in a divorce

Financial knowledge is crucial in a divorce

| Mar 23, 2021 | Divorce, Uncategorized

Do you leave the finances to your spouse? Doing so can put you at a significant disadvantage in a divorce. Yet, it is never too late to inform yourself.

Divorce has a powerful impact on a person’s finances

Being informed is crucial. After a divorce, it is likely that your household income will drop. Going though a divorce puts you in a vulnerable financial position. There is little point in making it worse through a lack of financial awareness.

You have the right to request financial information from your spouse

When preparing for divorce, you need the full financial picture. Without it, you cannot hope to achieve a fair result when you divide assets. If your spouse refuses to give you the information, you can ask the court to order them to share it.

How is property divided in a New Mexico divorce?

New Mexico is a community property state. In a divorce, the court will start on the basis that things belong to both of you, and you need to split them equally. Some assets are exempt because they count as separate property. These include:

  • Assets you held individually before marriage
  • Assets inherited while married
  • Gifts from one of you to the other

There are some exceptions to these rules, which an attorney can explain. For instance, if you inherit money then move it into a joint account, it may no longer be separate property. Details such as this show why it is best to understand your finances during the marriage, rather than leaving it until your divorce.