When one is swept away by the love and filled with the promise of a life partner, the mere thought of breaking up or divorce feels stupid. After all, one thinks of marriage to last forever. But this is not the case, as a good amount of marriages in Australia end in divorce. When one needs to heal a broken heart and determine the next chapter of life thinking about protecting financial assets in a divorce, it could make the process stressful.
Additionally, in finding a new footing as a single person, one must consider how bills will be paid moving forward. Along with the financial stress of divorce, some vengeful spouses could increase problems, costing the individual more money; for this, one could consult property settlement lawyers in Perth for assistance in money-related problems.
There are various ways to protect one’s assets during the tough experience of divorce. Some of the ways are-
- Legally establishing the divorce/separation
Once the decision for divorce is made, it is time to put the separation in terms of writing as quickly as possible. This could signal the beginning of an individual’s life on their own, but it also serves a financial purpose. Noting this on financial files can help one save money they make after divorce.
If an individual is separated from their partner for six months before divorce proceedings, all the income can be of that individual. If the separation is not legal, then there is a chance the finances could be divided. The date also applies to decisions regarding alimony and child support.
- Getting a copy of the credit card and monitoring activity
Regardless of whether one had fused their incomes and shared accounts during the marriage, one was exposed to their partner’s actions by being legally bound. Even if the spouse was a trustworthy individual, it does not mean there were no mistakes. Anything the partner did to damage their credit card score could’ve hurt the other person’s card as well.
This makes it important to request a copy of an individual’s credit card score as fast as possible. One needs to go through them and check for errors; one must continuously monitor them to ensure other people’s actions do not affect their future.
- Separating debts to protect the assets financially
Credit card firms could care less about divorce. One is still liable for any debt that their partner has racked up jointly in their accounts. It is advisable to leave marriages with no debt or only the individual’s debt. If one has money to pay off joint credit cards, they need to close the accounts.
If there are no funds, one can always divide the debts in half, transfer them to individual cards, and cancel joint accounts. One needs to avoid keeping joint cards because they need to pay the balance themselves if the partner leaves. Confused partners could consult property settlement lawyers to gain proper advice.
- Move half of the joint bank balances to a separate account.
One needs to open a new bank account and transfer 50% of the available funds to the new accounts as soon as possible. One must ensure that any income from employment or other direct deposits must be deposited in the new account.
Revoking privileges and removing all the cash could feel dramatic as a first step, but over the years, there have been many divorces where divorcees had to pick the pieces due to the emptying of bank accounts. The leading cause of financial problems during a divorce is when former partners have access to joint bank accounts. When one has to file a divorce, it is best to untie all joint accounts.
- Grooming through assets
While separating assets, some couples could be picky regarding who owns what. There is a chance for emotions to be heightened even more in these situations where the marriage ended due to lack of trust. Though it is always not the case, men begin to think they will have all the assets, while women are scared that they won’t receive any.
One needs to set aside any feelings of retribution or guilt during the process. Property settlement lawyers Perth, WA, can be called in if there are problems in the distribution of assets. One can get a thorough and accurate understanding of what they are entitled to by going through all the assets. Most of the assets are divided by some, like inheritance, and premature assets are not.
- Conducting a cash flow analysis
The various details during the process of divorce could take a long time. But as one negotiates with who gets what, they need to look ahead and prepare for their solo life. Doing some cash flow analytics can give one a sense of control over their finances. It is recommended that income streams be added and expenses be subtracted after the divorce. If there are shortages, one can start cutting discretionary items.
- One needs to account for repeating expenses that have been split with their partner. One does not want financial problems once they are on their own; it is advisable to review credit card and bank statements for the past year.
- One can also take advice from divorce lawyers in Perth regarding managing individual finance assets without getting into trouble. Attention needs to be paid regarding health insurance, digital subscriptions and car leases, and the expenses can add up fast when one is responsible for paying the entire bill.
- Not relinquishing control of assets or investments.
Divorces do not occur suddenly, and if the other partner causes trouble, the process could be delayed to months or years. This is why one needs to protect the investments and assets they are entitled to. One needs to separate assets to keep an eye on their money. Divorce lawyers can be very useful for consultation during these difficult times.
One needs to consider tax implications while separating; one has to understand the things they agree on before signing the divorce. For instance, if a partner takes control of the principal residence and the other takes control of retirement assets, tax implications will differ towards the receipt of each asset. Due to tax implications, one partner could lose value due to a future tax burden.
Divorce is never an easy thing; there can be various problems in the process. There are possibilities of having troubles with a former spouse in financial matters or division of assets. This is why having contacts with divorce lawyers Perth, WA, is important to make sure the burdens of divorce are lessened.
Former spouses don’t always respect each other so the divorce could be filled with problems. To ensure fewer problems in the process, one could search for the best divorce lawyers in Perth and select a lawyer that suits their needs. These professionals could help one handle assets, solve tax problems and make sure there is no loss of money.