It is never easy to part ways with someone you love, or used to love enough that you wanted to spend the rest of your days with them. Unfortunately, these things happen more and more. There is a statistic showing that well over 40 percent of all married couples in the U.S. eventually file for divorce. Sure, the divorce is always inconvenient, but with the right risk management, it can be made less unfavorable for all parties. In a situation where both parties agreed to terminate the relationship, you need to focus on two things you can save. First, you need to think about the kids and look for a way to stress them out as little as possible, and next, you need to think about your mutual finances. Here are five steps you can take in order to manage your finances during the divorce.
The first material thing you need to think about when getting a divorce is what is going to happen to your family home. Sure, it is a place of many memories and these memories can hurt. For your children, this is home, so selling it in order to split the money may not always be the best solution. You might want to try and find a way to divide your assets in the way that will allow at least one of the spouses to keep this property. Also, there is always an option of buying the other party out of their share of the home.
Another thing you need to think about during the divorce is the issue of your premarital funds. If you already had a substantial amount of money on your account before getting married, and then continued to deposit in that same account, this might become an issue. Sure, in the long run, it can be proven how much money you had before, but all of this is one big risk you don’t have to take. If you live in Australia, the smartest thing to do is find reliable Sydney lawyers who can help you with both property and financial settlements.
Be Aware of Separate Property
Apart from the property acquired before the marriage, there are some other assets that are considered to be a separate property and therefore cannot be shared during the divorce. For example, inherited property and gifts that are received by one spouse are their property alone and their spouse has no rights on them during the divorce. Of course, spouses can also agree to name something as a separate property by a written agreement, but this only works with the consent of both parties.
During a messy divorce, your court fees may become astronomic. Top-notch divorce lawyers cost an arm and a leg and this process may drag on for a prolonged period of time. Needless to say, the more it lasts the more it costs. On the other hand, if the both parties agree to do this as painlessly as possible, there is a better solution.
Prenuptial and Postnuptial
Finally, while most people think that a prenuptial agreement is their only option, it is also possible to make this kind of arrangement even after the marriage. This is a so-called postnuptial agreement. Most people decide that there is no need for a prenuptial agreement, but the situation sometimes changes. For example, one spouse may quit the job to take care of the kids and, therefore, put themselves in a career-wise unfavorable position. This is why making a postnuptial agreement might be a smart step of percussion.
As you can see, even though a lot of people fear the financial side of getting divorced, the truth is that it should be the least of your worries. There are so many steps of percussion, both pre- and post-marriage that can help you secure your assets in a quick and painless way. On the other hand, the separation from your significant other, and the whole ordeal about how to explain it all to the kids is an entirely different story. Luckily, this is something that courage, preparation and honesty can help you with.