It is no secret that getting a divorce can be costly. The property division process alone can have a significant effect on your financial future. While you may be experiencing emotional turmoil, it is crucial to not lose sight of the money aspect of divorce.
Luckily, you can minimize the financial burden of your divorce. Follow these guidelines to keep your finances stable as you leave your spouse.
1. Do not overvalue assets
It is easy to get emotional over certain pieces of property. If you have an unrealistic idea of how much certain items are worth, you may end up with an unequal settlement. The key is to negotiate from an understanding of fair market value instead of sentimental feelings.
In order to accomplish this, you should hire an appraiser to determine the value of certain assets, such as family businesses, memorabilia and real estate. You do not want to hold onto something only to experience a financial breaking point once all is said and done.
2. Separate financial accounts
Joint accounts link you together financially. This can be a serious risk once the divorce process begins. People can become vindictive during divorce. Beware of your spouse racking up credit card debt, clearing out your bank account or refusing to make mortgage payments. Unlink any joint accounts and open new accounts to keep everything separate.
3. Surround yourself with a good team
According to Emmie Martin at Business Insider, building a good team around you can help you make smart financial decisions during your divorce. Consider hiring the following professionals:
- Financial adviser
- Valuation expert
You need people to advocate for you. These professionals will be nonbiased so they can help you make informed decisions instead of acting on your emotions.
Ending your marriage will always affect your financial situation to some extent, but taking these steps will help limit the financial turmoil.