You know divorce makes the most sense for the current state of your relationship, but you feel uncertain about how to manage finances for your marital split. What aspects of your financial health require the most attention?
Forbes offers insights to help you manage money for the next chapter of your life. Learn how to protect your financial health and peace of mind.
With all mutual funds, stocks, checking accounts, savings bonds and other assets, consider tax consequences when deciding which assets to fight for. Specifically, learn how much you must likely pay in income tax and penalties. If you or your soon-to-be ex-spouse have an employer-sponsored retirement account, determine if you have a claim to survivor’s benefits.
While you may have fond feelings attached to your marital home, can you afford the cost of homeownership if you fight for the property? Even if you and your current spouse put the home on the market, the two of you must negotiate how to cover expenses while waiting to sell. Further, how do you want to split the proceeds from the sale? If you have a mortgage, consider any debt you may incur if you do not sell the home for the desired price.
Gather tax documents for the past five years, so you have a foundation for determining your desired assets’ cost basis. You and your current spouse must also decide how you want to file taxes for the next tax season. Talk to an accountant to make a well-informed decision.
Take time to set yourself up for financial success after divorce. A single decision may create ripples for years to come.