Divorce can be a trying experience both emotionally and financially. According to Brendan Lyle of divorce finance company BBL Churchill, taking a few wise steps can substantially lessen the potential for monetary damage after a couple decides to dissolve their marriage. Making the divorce process easier can help reduce stress, and ease the pain of a challenging transition.
Understand your assets and liabilities.
Take an inventory of what you owe and what you own. This includes mortgages, loans, stocks, and other investments and accounts. So many people rely on their spouse to pay things like mortgage on the house, and have no idea what their situation is. It is imperative that people take this step before legal counsel is even consulted. Finding these things out after a divorce lawyer is involved takes time and money. Knowing this information makes everyone’s lives a lot easier. This is also an important time to preserve or improve your credit. You will potentially spend the rest of your life securing loans without the assistance of your partner, so that is something to consider in the early stages of a divorce or separation.
Get professional financial advice.
Advisors can help clients determine whether it is wiser to sell things such as the shared home immediately and split its proceeds for investments, or if it is better to wait and sell major assets later. They are able to make these projections about your financial situation five years down the line, and help you determine what course of action best fits your needs. There are specialized divorce financial planners who do just that. It is also important to realize your spouse’s future earning potential, as well as your own.
Secure records and passwords.
This includes insurance information, birth certificates, passports and credit card information. Being as well informed as possible can also help control the cost of a forensic accountant, which can be one of the most expensive aspects of a divorce.
Know that resources are available in the interim.
BBL Churchhill issues divorce financing loans to pay for divorce litigation and living expenses based on projected awards at the end of the case. These loans generally constitute 25% of overall estimated awards, and are lent at rates akin to credit cards. This money can help a client secure the best legal counsel and maximize alimony and child support, as well as cover their costs of living in the time before the judge’s decision is finalized.