If you decide to divorce your spouse, it won’t be long before you’re wondering how it will impact your finances. More specifically, you’ll have concerns about property and debt division.
Just like everyone in this position, both you and your spouse will fight to obtain as many assets as possible. At the same time, you’ll look to avoid debts.
Since you’re not likely to see eye to eye regarding matters of property and debt division, there’s a real possibility that it could slow down the divorce process.
Fortunately, when you prepare in advance, you’ll know how to proceed, negotiate and compromise without harming your situation.
Here are some steps to take:
- Create a checklist: This should include a list of all your assets and debts, along with a value attached to each. For example, if you own your family home together, mark down how much it’s worth and how much you owe on the mortgage. If you have joint credit card debt, mark down the total balance.
- Separate assets and debts into marital and individual categories: You may have some assets and debts that are marital, as well as those that are assigned to either you or your soon-to-be ex-spouse. For instance, if you brought your motor vehicle into the marriage and your name is the only one on the title, it shouldn’t be subject to division. The same holds true for debt that is in one person’s name.
- Get in the right frame of mind: No matter how hard you try, you’re not going to obtain everything you want while avoiding all debt. It just doesn’t work this way. Get in the right frame of mind by realizing that you’ll have to negotiate and compromise every step of the way.
Even if the divorce process has come to a grinding halt as the result of disagreements regarding property and debt division, you can still work through your differences with the right approach.
This isn’t the only thing to consider when divorcing, but it’s likely to have a big impact on your future. And that’s why you should never stop short of protecting your legal rights.