Understanding your expenses after a divorce allows you to look at the property division portion of your divorce settlement in a meaningful way. You may think that receiving the family home is a victory, but understanding the process that you will need to go through in order to pay off the mortgage and refinance while buying out your spouse’s share could change your mind.
You also need to keep in mind the cost of property tax, insurance and maintenance for the future. Staying in the home may not be a wise idea if it means you could run short on grocery money by the end of the month.
Taxes are another element of your settlement you need to understand before you sign off on any agreement. The value of real estate or investment accounts may look good on paper, but some transactions may generate unplanned for tax obligations. you need to plan for them and ensure that they are accounted for in your settlement. Your settlement should account for any reductions caused by taxes when the transfers are complete.
Property settlements in a divorce are rarely modified. Without substantial evidence of fraud by the other party, a court is unlikely to permit any modifications. If you were sloppy in your math or failed to take into account other costs, you are likely to have to live with the result.
If you are in your 30s or 40s, you may not give much thought to retirement accounts, but during a divorce, it is essential that you obtain information on all accounts your spouse may be entitled to, including military pensions and Social Security. You need to ensure that that information is within your final settlement. Some day it will be vital.
There are many significant elements to your financial settlement when you divorce, and it is essential that you and your attorney do all the due diligence necessary to get it right the first time, as you are unlikely to have a second chance.
