Secrets to Maintain Self-Respect and Finances during a Divorce Mediation Process

Secrets to Maintain Self-Respect and Finances during a Divorce Mediation Process

INTRODUCTION At the start, a marriage is a joyous and happy event for the people involved. At the time of saying “I do�, most couples never imagine that this newfound bliss might one day turn into despair and anger. Sadly, however, this is the reality these days. Marriages may turn into one of the most difficult parts of your life. If you are facing a divorce, here is how to maintain self-respect and protect your finances.

Table Of CONTeNTs  Before Divorcing  During the Divorce  Divorce and Bankruptcy: Things to Tell Your Divorce Attorney Beforeh and     

Child Custody Financial Documents Assets Division and Debts Spousal Support Child Support

 Navigating High Net worth Divorce: Complications You Should Be Prepared to Handle    

Hiding of Assets International Complications Tax Implication Business Ownership

 Parting Thoughts

Before Divorcing 1. Open a Bank Account If you had a bank account prior to marriage, make sure the money is kept separate from the joint account that you have with your spouse. As long as it is not combined with your spouse’s money, you remain the legal owner in case of a divorce.

But if you only had a joint account with your spouse, this is the time to open yours and start putting money into it. Your partner cannot drain personal account the same way they could your joint account. However, you need to know that if you reside in a community state, any amount going into this account will be deemed a marital property unless you first establish a formal separation date.

2. Establish Separation This step is very important especially for those in a community state. After establishing a date of separation, it will become impossible for your spouse to stake claim to your income or any new assets that you acquire using that income.

Moving out is one way of establishing separation. Whether you move into a separate apartment, your parents’ home or into a new home, you are making it clear that the two of you are not functioning as a couple anymore. Your ex cannot touch any income you receive after this date.

3. Establish Credit Do not allow your partner to be a joint holder or a user to this account. Also, use the card wisely and avoid running up huge bills. The card might come handy in times of emergency.

During the Divorce 1. Filing for a divorce Your best bet is to contract a high-quality lawyer. Although they charge high fees, note that the stakes are even higher. But a top-range lawyer is not necessary if you are pursuing the option of mediation.

2. Change all Account Passwords Your social media, financial, and email passwords should all be changed as soon as possible. When choosing a new password, ensure it does not have anything to do with your life as a couple.

3. Limit Access to Joint Accounts Remember also to review all your accounts and see which accounts are joint accounts. There are times when it will be impossible to close the accounts until you reach a divorce settlement. But you are free to talk to the institutions that you hold the account and let them know of the situation. They could help you limit account access thereby preventing them from being depleted.

Conclusion During the divorce proceedings, it is important to carry yourself appropriately.

Refrain from speaking angrily and saying things that might be used against you.

Do not threaten your ex and also avoid running up massive bills with the joint accounts. Also, do not have conversations with your ex alone during proceedings. If you must have any contact, make sure you do it in the presence of a third party or a representative. If you conduct yourself in a manner that is above reproach, your chances of receiving concessions during a divorce will be much higher, especially if your spouse behaves poorly.

Divorce and Bankruptcy: Things to Tell Your Divorce Attorney Beforehand If you have never undergone a divorce, there are chances that you not aware of what are in store for you. Hiring a reasonable divorce attorney is not a ticket to a smooth divorce process. Once you get yourself a qualified lawyer, there are things you need to discuss with him or her at length, especially if you are bankrupt.

Once you schedule that first meeting, put him in the know of how you want things to be done. Let us take a look at some of the essential things you should discuss in detail with your attorney to make your case manageable.

Child Custody There is no doubt that this is among the highly contested issues during a divorce case where children are involved. Talk to your lawyer if you would prefer being granted custody. Know that there are two types of custody: legal and physical. Remember the court may take into consideration your bankruptcy while making a ruling. After all, the child's welfare comes first. If your spouse is not bankrupt, it is most likely that you will carry the day.

Financial Documents In most divorce cases, finances are the biggest issue. Tell your attorney the truth about your financial situation. Telling him by mouth that you are bankrupt is not enough. Provide evidence to support your sentiments. Gather all the necessary information and documentation and bring them on board. It will provide your lawyer with all the information he needs.

Assets Division and Debts Everything you acquired while living together will be up in the air for the division —whether it is cars, houses or land. Let your lawyer know what you would like to keep so that he can fight for them. Likewise, any debts accrued during your time together will also have to be looked into. Your partner may want to evade it, so be smart and let your attorney get a step ahead.

Spousal Support This is one of the controversial parts of the law. If your attorney can prove your bankruptcy in court, you can ask for reimbursement alimony since you became bankrupt while in that marriage. Do not forget to discuss career goals and the time it will take you to achieve them and your financial needs as they will also play a part in determining the support you will get.

Child Support Legally, both parents should provide financial support for their kids. It is upon the parents to agree on how they will be contributing. Otherwise, the court will rule about it. Some spouses may take advantage of the situation and ask for more than what is required. If your lawyer understands that you are bankrupt, he will present it in court, and the ruling will most likely favor you.

As we all know, divorce can be so complicated. It can drain you physically and financially. However, hiring a good divorce attorney and telling him the truth about the things discussed above beforehand is synonymous to half winning the case. Remember, they are human, so they largely depend on the information you provide to them. If you tell the entire truth, you will be good to start.

Navigating High Net worth Divorce: Complications You Should Be Prepared to Handle Ever heard of an easy divorce? I bet not—some complications often arise during the process. It worsens if the divorce involves high net worth people.

This is because a lot of property and finances are involved. It becomes tedious, resource-intensive, and even dramatic.

If you are navigating a high-end divorce, here are some of the complications you are likely to handle.

Hiding of Assets During a divorce, partners fill in forms showing all the assets they possess.

Some partners can be devious and decide to hide some of their properties to cheat their spouses out of fair finance sharing. In most cases, the assets are transferred to a third party or funds transferred to different accounts. Stay alert and if such cases arise, arm yourself with evidence and discuss it with your attorney. Considering that this is a punishable offense, such a partner will end up losing credibility or even facing charges.

International Complications Most people who have high net worth tend to have businesses outside the state or abroad, not to mention that most of them live international lifestyles. They may have two or more citizenships. This gives them access to multiple jurisdictions. Disagreement can ensure on which authority is most suitable to handle the divorce. In cases where a partner has companies abroad, you may need to engage the services of a financial forensic team to help fish out the company's assets that may be hidden elsewhere.

Tax Implication Most people find tax topics annoying. They do not understand that significant tax implications are bound to arise during property distribution. For example, if one partner owns a business, and they are supposed to transfer an asset such as a car or land to their spouse, certain tax liabilities will be triggered. The spouse receiving the asset should understand that they will be taxed, thus raising their expenses.

Business Ownership It is not abnormal to find that couples with high net worth jointly owning a family business. They tend to invest together during the marriage duration. Once they divorce, such companies become a Centre of conflict. The company's value and future have to be determined to enable a fair distribution. Partners may continue co-owning the company. If their differences cannot allow, one partner may have to sell their shares to exit the scene altogether.

Parting Thoughts No doubt navigating a high net worth divorce can be tiresome, and if not well handled be so messy. A lot of money makes emotions run high and creates high tension. They can also be time and resource-intensive. Do not rush into this divorce, take your time, analyze everything thoroughly, and never be driven by your emotions.

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