It is never too early in the divorce process to begin thinking about your life after the divorce: specifically, your finances. You need to make sure that you appropriately prepare for a divorce in Florida so that you can protect your investments and your financial future.
U.S. News and World Report explains there are a few things that you can do to help protect yourself and to set things up financially for success post-divorce. Here is a look at three important steps you want to take.
1. Understand how the court divides assets
The division of property in your divorce is an important step. You need to understand what the court is going to do. An equal division of your marital assets means that the court looks for the fairest way to divide up property. This may not always mean you get exactly the same value.
2. Watch out for tax liabilities
You should keep in mind that the IRS will want its fair share of anything taxable. Some transfers of funds or changes in finances will be subject to taxation. It is important that you keep an eye on your tax liabilities to make sure you get the fairest deal in the settlement.
3. Create your own retirement portfolio
You should not rely solely on your spouse’s retirement. You may or may not get part of it in the settlement. Make sure that you set yourself up your own retirement. This will give you more control over it as well. It enables you to make investments or decisions that you feel comfortable with. Plus, you get the chance to shape your retirement plan the way you want.
There are many smart financial moves you can make during your divorce. It is a good idea to always look forward throughout the process, so you can prepare your finances for when the divorce is final.