Should you find yourself coming face to face with the divorce process, a good amount of your energy will turn toward protecting your assets. This is particularly true in the event that you and your soon-to-be ex-spouse have significant assets that have the potential to cause tension during divorce.
As you consider the impact of divorce on your future, there are a variety of questions you must answer in regard to your assets. Here are some of the most important:
- Who will pay educational expenses for your children? This can include everything from private school tuition to college tuition and room and board. You want to work this out during your divorce, as doing so after the process is complete is much more challenging.
- How is a small business divided? This depends on a variety of factors, such as whether both individuals have a stake in the business. Business assets can include everything from bank accounts to commercial real estate to valuable equipment.
- What happens to retirement accounts? Don’t make the common mistake of overlooking the importance of fighting to retain your portion of all retirement accounts. If you fight for other assets, leaving retirement accounts to your ex-spouse, you’ll eventually regret it. Even if it’s not for many decades when you finally decide to hang up your work boots.
Along with the above, you should also consider any debt you have. You may find that you have extensive liabilities, which adds another challenge to the divorce process.
Debts can include but are not limited to:
- Credit cards
- Personal loans
- Home equity loan
- Home equity line of credit
- Mortgage on second home
A high asset divorce can also mean a high debt divorce, so be sure that you pay attention to these equally important details.
As you prepare for a high asset divorce, create a checklist that outlines all your assets along with a value attached to each one. This makes it easier to visually see what you’re up against, while also creating a strategy.
You have legal rights and protecting them during this difficult time of your life is a must.