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Learn about your financial status before the divorce

On Behalf of | Aug 3, 2016 | Divorce

Planning for a financially stable future after an Ohio divorce starts before the process gets underway. Before a financial settlement can be drawn up between the parties, each person must know the specifics of their financial situation as well as be honest with themselves about their financial future.

One of the things to consider when planning for financial stability after a divorce includes making a list of marital assets, which includes the value and owner title information for each asset. These can include the family home and other real estate as well as a 401(k) accounts, investment accounts, stock options and pension plans. It is also important to figure out the tax liability for each party if the asset needs to be sold as part of the settlement and the implications of keeping ownership over certain assets. For example, it might not be the best idea to sell a family business, but after a divorce, it might be difficult to run that business together, so the parties need to figure out how to negotiate this.

Another important aspect of financial planning is to think about life after the divorce. The parties need to ask how they will support themselves, their lifestyles and their children. It is important to be honest about cost of living, considering the basic amount they need to feel stable as well as the amount that would make life comfortable. Planning for children’s later futures, such as college tuition, also plays a role in deciding how to negotiate a divorce settlement.

People who are facing the end of a marriage need to be honest about the financial aspects surrounding their situation. This way, they can negotiate a fair settlement without fear getting in the way. They might seek the advice their respective family law attorneys might provide about how to best plan for their financial future as they negotiate a settlement.

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