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Sorting out your finances as you prepare for divorce

On Behalf of | Apr 12, 2022 | Divorce |

Divorce brings upheaval into many parts of your life, and finances are one of the main areas affected. Living in Washington, which is a community property state, means that your shared property will be divided equally during divorce but there are other aspects of your finances that you need to address.

Evaluate your financial situation

You need to go into your divorce negotiations with a clear mind and an honest assessment of your financial situation. Some of the things you should evaluate as you prepare for the negotiations include:

• Shared property and debt

• Your income amount and sources for life post-divorce

• Future living situation and its costs

• A budget for life after the divorce

Financial support might be an option

In many cases, as a couple goes through a divorce, they will also have to settle custody and support issues. This might mean that you might have to receive or pay child support or alimony. Both can play a role in your financial situation after the divorce is finalized.

Do not forget to consider the future

Dividing property does not only refer to things such as your savings accounts and your family home. When you are negotiating your divorce settlement do not forget to address any pensions or retirement accounts that are in existence, as these two will need to be divided. However, since those funds will be unavailable until retirement, you will need a qualified domestic relations order to establish the division. You also need to consider the tax implications of the choices you make during the divorce, as they can significantly impact the value of certain property

The best way to sort through financial issues during divorce is to be meticulous and patient. Negotiating with an estranged spouse can be emotionally painful but it can often be done in a somewhat amicable way that benefits both.

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