Some couples get so tempted to just sign the divorce settlement in a hurry just to get the process over with. Even when things look good they may not always be fair and for some, they find out after the divorce has been finalized. When making decisions regarding the settlement there are several areas that should be thoroughly considered.
When the divorce settlement is being created, a spouse often thinks about what they are getting now verses how what they get now affects their future. Others may not be thinking about their future outlook or living arrangements until they face financial hardship a couple years after divorce.
The following issues should be carefully considered to improve chances of a better outcome after divorce:
- Knowing the worth of assets and liquidity of assets.
- Know the impact or potential impact of taxes.
- Understanding issues related to retirement accounts.
- Review and understand debt and credit related issues.
- Maintaining control over insurance policies.
- Creating or sticking to a budget.
- Identifying hidden assets.
Division of property may have a larger affect on the outcome of divorce than many realize since some are not clear on the actual value of their assets. Tax situations will change since you’ll be filing your own return and if you have children you’ll have to determine who will claim them as dependents. Debt owed may also have lingering affects after divorce if you feel you will not be consistence in making payments.