In our last post we focused on the importance of thinking ahead before filing for divorce. How would filing now affect a business? What assets would be considered marital property? However, outside of these aspects, from a financial standpoint, also make sure to think about the importance of honesty and the future in terms of retirement.
When it comes to honesty, if a spouse lies in court — and is caught lying — a judge may be hesitant to believe other facts. For example, let’s say a husband lies about an affair he had. Granted, he may have reason to want to hide this. But, if his wife is able to prove the affair did happen, a judge may look at his dishonesty and wonder what else the husband is hiding or lying about. The next thought could be, maybe the husband is earning more than he claims? How should this play into alimony?
To avoid this, it is best to just be honest in court no matter what. Whether it is related to finances or not, honesty is always key when it comes to divorce.
From a financial standpoint though, also make sure to think about retirement accounts now. Many times, spouses just want their divorce over and done with and do not think about their retirement accounts until afterwards. Instead, talk to the 401(k) company as soon as the divorce settlement is reached. This will ensure the money is transferred and not forgotten about and owed years from now.
Of course this is a lot to think about. When it comes to divorce, while many might want to rush through finances, this is an important aspect of the process. Just because someone has gone through a divorce, does not mean their finances should suffer well into the future.
Source: Fox Business, “Divorce Attorneys Share their Tips to Avoid Financial Mistakes When Splitting Up,” Kate Rogers, Feb. 19, 2013
- Our firm works to protect the interests of those going through a divorce. To learn more, visit our St. Louis property division page.