The mental and emotional toll divorce takes is already a lot to bear. Adding to this, however, the hit you take financially. It can be demoralizing seeing your bank account depleted after years of building wealth during your marriage. What’s more is that after your divorce, you will most likely have to make do with less – at least for a while.
How much your divorce will cost depends on a multitude of factors. You and your spouse’s income situations play most heavily, while children and financial instruments and investments used during your marriage will also be factors. Setting accurate expectations can prevent you from being caught unprepared during your divorce.
Will You Be Awarded Your Rightful Possessions?
Everything which is earned and acquired during marriage is considered marital property in the State of Florida. Any debt which is incurred during the marriage and for marital purposes is also marital. What this means is that the only assets/debts which are obtained during a marriage that are not marital are those which come from non-marital sources, like an inheritance. Many people wrongly believe that if it is in an individual’s name instead of both spouses’ names, it is non-marital. This is a huge misconception.Therefore, obtaining actual non-marital assets may require litigation. The best way to prepare for a divorce is to gather all deeds, titles, and ownership documents you can find. These will go a long way in assisting you in the process of figuring out how to create a division of assets and debts.
Generally, marital assets (those acquired during the marriage) will be divided equitably (not always equally) during the divorce. So, you normally get to keep all your purses/shoes or golf clubs, however, the value of those assets may be factored into the total distribution of assets.
Does Divorce Affect Both Genders Equally?
While psychologically, some studies show divorce affects men more than women, in financial terms, it is not uncommon for women’s quality-of-life to decrease after a divorce. It is also common for men’s financial straits to improve after a divorce. Men who were previously pulling in at least 80% of their household income are often the most secure financially after separating.
How Can You Prepare Your Finances Now?
If you feel a divorce is on the horizon for you and your spouse, there are some steps you can take now to shore up your finances. The first thing you should do is create a separate bank account for yourself if you do not already have one. After you have your own checking account, set aside funds to be used specifically for the divorce. It might seem twisted, but divorce is a big event that needs to be planned for and scrutinized like a wedding or long vacation. Just like any big project, without proper planning, divorce can end up costing more money and taking more time than you originally planned.
How to Prepare for Life Post-Divorce
You probably had a budget before your divorce, and you need to make a new one for your new situation. Although the court may have ruled that you are entitled to alimony, child support payments, or both, it does not typically grant you regular financial support for the rest of your life. Studies have even shown that more than half of women don’t reliably receive full support payments from their ex-spouse. Therefore, it is prudent to prepare a budget that relies as little as possible on court-ordered payments.
Let Us Guide You
If you have been married to your spouse for a considerable amount of time, chances are you have something to lose if you do not enlist the help of a seasoned family law attorney. Fortunately, we are here in Miami to get you the best judgment possible. Contact us now to get started.