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How to Protect Your Money in a Divorce

How to Protect Your Money in a Divorce

When facing an impending divorce, one of the first things that a family law practice in Orlando will tell you to do is to begin to prepare. Divorce can be an emotionally trying time but you must not forget that you must stay strong not just for yourself. You will also have your children, your future and your finances to worry about.

Getting financial protection during a divorce is important. Here are some ways to ensure that you come out of a divorce as unscathed financially as possible.

1. Hire a competent divorce attorney

Find yourself an experienced family law practice in Orlando and get a divorce attorney that will ideally prioritize an amicable mediation or a collaborative divorce process over a lengthy court process. Generally, you stand a better chance of limiting your financial losses and legal expenses when you and your partner come together to find solutions to disputes and negotiate amicable settlements.

You can check out recommendations from loved ones or look online for a reputable family law practice in Orlando to help you with your divorce process. Also before hiring a divorce attorney, be sure that your strategies align and you’re sure the person understands what works best for you.

2. Take stock of all your assets and liabilities

You must identify what assets belong to you in the marriage. The first thing you must do is to know what you are worth and where it is. Call your banks and take note of how much cash you have in bank accounts in your name and what is in joint accounts with your spouse. Also find out what the status of other financial contracts. These include home mortgages, investments, boats and other properties of value.

You have to present a good financial picture to the court and also to your family law practice in Orlando so that you can make a case for what is yours or what you want to lay claim to. If it is looking daunting for you to sort out, find a financial planner or ask your family law practice in Orlando to recommend one for you.

3. Have copies of all relevant financial documents

Experienced attorneys will advise you not to depend on electronic copies of important documents. Get as many financial documents in writing as possible. You should find proof of ownership for your assets and keep copies for future use. This will help you prevent a situation where a vengeful and petty spouse could lock you out of online accounts and you are unable to access critical information easily.

Download and print as many months far back in bank account statements as you can. Also look out for tax forms, credit card statements and any other document that will be important to your case during financial disclosure of assets in the marriage. Remember that you cannot claim what you cannot prove that it exists.

4. Make arrangements for mortgage and rent payments

Whether you are getting divorced or not, your mortgage payments and rent will not stop. If the rent and mortgage are joint payments, you should make plans about who will be responsible for the payment while the divorce is going on. If the situation is untenable, then you should find another house. Sometimes it may not make sense to keep the house after the divorce due to the maintenance cost. In this case, selling it would be the best way to go and this will be done according to the direction of the court.

If you are still going to be responsible for the rent of the house and you go to rent another hone, you will quickly find yourself in direr financial strains than what you were trying to avoid.

5. Protect your retirement and pension plans

It is critical in a divorce that you are able to prevent your former spouse from drawing funds from a joint pension plan. Not only will you suffer early liquidation penalties but once one partner starts to tamper with the pension funds, it is always difficult to get it back to normal again. In a situation where you find that your pension and retirement plan could be negatively impacted by the divorce, you should see the advice of a financial planner on what best to do.

In most cases, you will be advised to hold off on any changes to the pension plans until the divorce process is complete. After the divorce is agreed, you can then go ahead to separate the funds or whatever works best for you.

6. Change your will

Your final will and testament are impacted by a divorce as in most cases, it ceases to be relevant. There is therefore a need to update the beneficiaries to your assets in the event of your demise. In the event you leave an ex-spouse on your will, the person will automatically become the beneficiary regardless of the divorce or not.

Adjust your will to reflect your current condition. Most states do not allow divorced spouses to benefit from the other party’s will. The new beneficiary can either be your children or your new spouse. Either way be sure not to leave your will unchanged.

Conclusion

A divorce is hard enough emotionally without you adding financial worries to the mix. Work with a reputable family law practice in Orlando to ensure that you have a solid plan for the divorce so that you can come out of it unscathed.

Frank Family Law Practice has the experience and reputation to help you through all your divorce and family law issues. With divorce attorneys at law that will work towards handling all divorce and post-divorce matters, you are in the best hands to help you resolve your family issues amicably and with minimal strain on your emotions and finances.

Call us today on 407-629-2208 or send an email to staff@frankfamilylaw.com and we will be happy to be of service.