Going through a divorce can be an expensive process, especially if there are high-value assets involved or significant tension between you and your former partner. However, even when a divorce is headed toward an amicable settlement, it can be very difficult to divide marital property, financial assets, debts and items of value as you plan for a life without your spouse.
With this in mind, there are some things you can do to help reduce some of the common expenses in a divorce so that you can preserve more of your wealth and assets for the years to come. The following are some tips:
- Make a new budget: Consider your new income and expenses, and adjust your budget accordingly based on what you can afford. Factor this into the property division process as you consider which assets or property you would like to keep.
- Understand your credit rating: In some marriages, one spouse may not have the opportunity to build a strong credit rating. If this is the case, you may need to take steps to establish or build good credit.
- Develop a new retirement plan: During a divorce, retirement assets like IRAs and 401(k)s often get divided. However, you should take particular note to avoid unnecessary taxes and fees of withdrawing funds too early.
- Know your tax obligations: After a divorce, you’ll likely need to file your taxes separately. If you have primary custody of your children, you may be able to file “head of household,” and it’s possible that you’ll be in a different tax bracket once your divorce is finalized.
There are some expenses you cannot avoid when going through a divorce. To learn more about your options and other key tips, consult a knowledgeable Fairfield County divorce lawyer with Siegel, Reilly & Kaufman, LLC.