Preparing for the Divorce Settlement
Prior to finalizing the divorce settlement, there are several things that should be taken into consideration, including the following items:
- Understanding: There is a lot of jargon and fine print involved in a divorce settlement, so prior to signing on the dotted line, it is recommended to consult with a professional divorce lawyer to ensure all terms are understood and that no essential elements are left out.
- Finances: The financial situation of both parties must be assessed. Among other things, it is important to document the assets, liabilities, expenses and income of each side of the divorce. Additionally, insurances and credit ratings should be evaluated and factored into the final settlement.
- Taxes and Future Agreements: How will the couple be filing their taxes at year end? Individually or jointly? Who will claim the children (if any) as dependents? How are wills and trusts acknowledged in the divorce settlement? How will retirement plans be recognized in the divorce settlement or change upon ending the marriage?
A divorce can be a complicated event in a person’s life. Taking the proper steps to ensure the best interests of both sides are ensured can save many headaches in the future.