People who are ready to end a marriage will likely want to just be completely done with each other – but it’s never quite as easy as that. There are numerous financial issues that have to be settled before you can part.
Making sure that you have a divorce settlement that’s in your favor can help you to get your new life started on the right path. You need to think about three things as you’re working out the divorce settlement.
#1: What can you reasonably afford?
You’re going to have to live off of only your own income. There’s not a second person to help you with your expenses. Sit down and create a budget so you know where you stand. Even if you have investments and multiple streams of income, you need to be realistic about your financial state after the divorce.
#2: How can assets and liabilities be divided?
Assets and liabilities must be divided. This might not be easy. Part of coming up with a plan means that you and your ex will have to determine if assets can be liquidated to pay off debts. This takes the burden off both parties since neither person will have to wonder whether the other is paying joint debts or not.
#3: What will happen to your credit?
A divorce is a civil matter. Because creditors aren’t included in the proceedings, they aren’t bound by the terms of the split. This means they can still hold both parties accountable for joint debts. Your ex not paying the debts they’re assigned could have a negative impact on your credit score.
Ultimately, you have to make decisions that you feel are in your best interests. Taking the time to determine exactly what’s worth fighting for can help you to set a plan in motion. Having someone on your team who can help you through the property division matters can help you to experience less stress while you’re moving through the legal process.