How do I prepare for a financial separation during divorce?

The end of a marriage creates a drastic change for Dallas-Fort Worth spouses. Many people focus on the emotional aspects of a marital break-up, which can be very tough to handle. However, a high-asset divorce involves a lot more than two people choosing to take separate paths.

Divorce is about the division of lives. A physical separation is often the start, but it is usually the first of many divisions. Spouses must divide time to spend with children, the property they own and the debts they owe.

Division of marital property during divorce can be very involved for spouses who have accumulated significant wealth during marriage. Some spouses often don’t realize just how extensive marital assets and debts are until a life-altering event occurs like the death of a spouse or divorce. Unfortunately, this task often is necessary when emotions override reason and logic.

A Pew Research study shows 65 percent of wives in heterosexual marriages are employed, but other studies suggest women are less prepared than men for property splits during divorce. Financial advisers are in touch with husbands more often than wives. This is an important point since “do over” divorce settlements are rare.

A fair property settlement comes from an understanding of marital money management. Ignorance of assets, property values and liabilities is a distinct disadvantage. Spouses who feel they lack sufficient knowledge or choose not to delve into economic complexities may hire one or more financial professionals for advice.

Forensic accountants can uncover hidden income, assets or debts while valuation experts determine the fair market value of property. Some advisers specifically help divorced individuals avoid unnecessary tax burdens. High net-worth divorce attorneys work together with all these individuals to obtain the most favorable legal outcome for clients.

Financial decisions made during divorce are long-lasting. In a high-asset divorce, a team of advisers may be necessary to ensure a sound financial future.

Source: The Huffington Post, “What to Do When Divorce or Widowhood Puts You in Financial Control for the First Time,” Michael Most, Sep. 23, 2015