A divorce can be a traumatic and jarring life experience, particularly if your finances are not in order. It is essential to know how you will support yourself financially without help from your spouse in the event of divorce.
Prenups are the most effective way to protect your finances
If you are planning to get married or have recently gotten married, a prenuptial or postnuptial agreement is often the best way to protect your assets in the event of a divorce. These agreements specify which spouse will take which assets if the marriage ends. Courts will typically adhere to the terms of these agreements when it comes time to divide the assets. An experienced family lawyer can assist in drafting an agreement.
What happens if I do not have a prenup?
Many people go into marriage thinking they will never get divorced or that asking their future spouse for a prenup signals that they are already looking towards the end of the marriage. As a result, they do not enter a prenup. If you do not have a prenup/postnup and you are planning to get a divorce, here are a few other tips to maintain financial stability during and after a divorce:
- Keep a thorough record of all your assets.
- Do not secretly remove money or assets from any joint accounts or hide any assets from your spouse.
- Create an individual checking and savings account and put aside money for emergencies.
- Make sure you are covered by insurance and change your beneficiary forms, if necessary.
- Do not insist on keeping the family home unless you can afford it.
- Account for extra childcare expenses, including expenses for extracurricular activities.
- Consider whether you will have to pay taxes on assets you are claiming.
Many Virginia residents find it difficult to manage their finances after separating from their spouse. It is important to make smart financial decisions and take the necessary steps to protect your assets to ensure that you can support yourself in the years to come.