Virginia Divorce ~ Financially Brilliant Divorce
In divorce there are plenty of financial preparations to be made. Ideally, the goal is to simplify the divorce and make sure both spouses make it through the divorce process. Here are some tips to make a financially brilliant divorce.
~ Know your state property laws. Find out whether you live in an equitable distribution state or a community property state. Be prepared for state specifics, you don’t need any surprises.
~ Construct your budget as a single person. This is imperative when making support estimations and planning future financial matters.
~ Learn about your retirement plan. This may come up in court and you need to be as prepared as possible.
~ Assess your assets. $200,000 in home equity is not the same as $200,000 in cash. See how your assets will affect your taxes as a married couple vs. a single adult.
~ Research child support and spousal maintenance. See how these affect yourself and your spouse.
~ Research the changes of taxes based on your marital change.
~ Make a plan for debt and credit issues. If you are keeping the marital property it is in your best interest to refinance the property so that it will only be in your name. Joint credit cards should be cancelled and new ones in just your name opened so that there are no unexpected surprises from your spouse.
~ Don’t forget insurance coverage. Take a look at your health, life, homeowner’s/renter’s and business insurances.
~ Report your plans of divorce to your employer so that they may change information on your W-4, your trust, insurance and retirement plan beneficiaries. Register everything in only your name.
If you are fully prepared, you are fully ready for divorce. Without preparation, you cannot be sure that you cover all areas. Learn your facts !