Understanding How To Deal With The Financial Aspects Of Divorce
The Financial Considerations of Divorce
One of the most frequently-cited reasons for divorce is money problems. It should come as no surprise that the allocation of income, assets, and debts is a significant part of your divorce process. While this process can be complex and stir up emotions on both sides, Peace Talks’ professional and experienced financial mediators will expertly guide you through the steps necessary to create mutually agreeable financial arrangements in your divorce.
During the marriage, it is not uncommon for one spouse to be the financial manager. If you have not been the financial manager in your family, you will need to develop an understanding of your family’s financial picture.
If you are the financial manager in your family, the sooner you and your spouse develop an understanding of your family’s financial picture, the less you will spend on your divorce.
What Are Your Financial Considerations?
To help you understand your financial picture, there are numerous questions you must ask.
- Consider your temporary financial situation; for instance, how will bills be paid?
- What is your budget for the divorce?
- How will you finance the divorce?
- How complicated is your financial situation?
- Do you have a retirement plan?
- Do you or your spouse have special ways of being paid for your work such as stock options, restricted stock units, bonus plans, commission plans?
- Does either spouse operate a business?
These and other questions will need to be answered and are vital to the divorce process.
Declaration of Disclosure
You and your spouse are required to exchange several Declarations of Disclosure. These legal documents detail the financial status of each partner and can affect amounts of child support and spousal support in your finalized divorce agreement. Failure to give full disclosure may have drastic consequences.
Declarations of Disclosure in your divorce will include:
- Preliminary and Final (Final may be waived)
- Income and Expense Declaration
- Schedule of Assets and Debts
- Income tax returns for the last 2 years
Our financial mediators are available to answer any questions you may have about Divorce and Finances.