Deciding to file for a divorce can be an especially traumatic and overwhelming period in your life.
The separation process can be complicated since it includes settlements for alimony, child custody, splitting of assets, and chaotic arguments. And it’s quite natural for tension and anxiety to run high with so many things that need to be sorted out quickly.
However, it is essential to keep calm and remember to do certain things to avoid complications in your divorce agreement that can negatively affect your future. To guide you during this tough time, here’s a list of things to remember when filing for a divorce.
5 Things You’re Forgetting To Do During Divorce
1. Updating Your Will
Finalizing a divorce and distributing assets do not revoke an existing will. If anything were to happen to you, chances are your ex-spouse can claim money and property as a beneficiary. So, it is important to remove your spouse from the will and update beneficiary designations.
However, under certain state laws, it is not possible to completely disinherit an ex-spouse, so make sure you seek clarity on this by speaking to your divorce lawyer. And if there’s a reconciliation on a separation agreement, it is advisable to stick with the updated will in case you separate again.
2. Pulling Your Credit Report
To avoid discovering growing debts in your name after the divorce, carefully review your credit report. This will help in producing evidence in court if your ex-spouse has taken any debt in your name. Pulling a credit report at the beginning and the end of the divorce process is advisable.
3. Changing Your Power Of Attorney (POA)
If you had previously executed a Power of Attorney in favour of your ex-spouse, you should immediately contact a lawyer to help change it. A POA towards your ex-spouse means that they have the authority to make decisions on your behalf.
4. Reviewing Financial Accounts And Potential Child Support
Create a list of all bank accounts, credit cards, brokerage, medical and care insurance, life insurance, and retirement assets to initiate the financial delegation smoothly. Pay more attention to joint accounts with your ex-spouse; however, only transfer funds with professional advice.
Moreover, settle on child support that both of you will pay monthly. The child support agreement should also include a flexible arrangement to accommodate your children’s increasing financial needs as they grow up. College fees, sports, training, and coaching costs, etc., have to be accounted for.
5. Taking Care Of Your Taxes
Getting custody of the house may come with high taxes, mortgage payments, and maintenance expenses. If your income isn’t sufficient to bear these, you should ask for an investment portfolio of the same value. Talk to a finance consultant to learn more about safeguarding your capital gains.
Put your best foot forward and cooperate with your spouse to ensure a smooth separation. However, if the marriage involved animosity and domestic abuse, you should inform your lawyer for fair asset settlement or compensation.
You should also consider the possibility of reconciliation and combined child custody since they require a mutually signed agreement that will sustain if you separate again in the future.
For further assistance, consult a reliable family and divorce lawyer to discuss your case.