Going through a divorce can be emotionally draining for both you and your spouse. What's worse is that it can also become very difficult to recover from it financially. When you've reached the end of your divorce process, you may have a huge debt to your name which can have a negative impact on your credit score.
It's important to understand the financial consequences of divorce to make sure your assets are protected and the loss is minimal. If you aren't careful, your life will be in a shambles by the end of it.
Here are some important financial aspects of divorce that you need to be aware of:
Division of Property
There's a reason why everyone places such an importance over prenuptial agreements. They leave no room for conflict over assets and finances in the event of a split. The laws for division of assets can be different depending on your state.
Some states are known as community property states where any assets obtained during the course of marriage by either spouse will be deemed joint marital assets and divided equally between both parties.
In Georgia, division of assets in the event of a divorce is based on equitable distribution.
This means that only marital assets and debts will be divided fairly, not equally, because according to the law in Georgia, fair doesn't always mean equal.
Marital assets are those assets that are obtained by both parties during the marriage. It doesn't matter whose name is listed on the property. Any property acquired during the course of marriage like homes, businesses, cars, etc. will be deemed marital.
Separate properties of both parties will not be considered as marital assets and therefore, won't be subject to equitable division. This includes property acquired by either spouse before marriage, or property received by either party as gift, inheritance, bequest or devise, even during the marriage.
Child support is another complex aspect of a divorce. If you're responsible for paying it, you may think it's unfair and asks too much of you, but if you're not, you may think it's not nearly enough.
Typically, the noncustodial parent pays child support. However, in some instances, a custodial parent may be ordered to also pay support for the minor children. If you incur a material change in financial circumstances in the future, you can seek a modification of a child support order that is more aligned with your present financial situation.
When a child is known to spend the majority of their time with one parent, the responsibility of child support almost always falls on the other parent's shoulders.
In addition to child support, you may be responsible for spousal support in case the divorce leaves your former spouse without the financial means to make ends meet. It's usually a temporary measure used to help your ex recover from the financial impact of the divorce, however, in some circumstances and order of alimony can be made on a permanent basis. The court decides if there's a need for you to pay alimony or not if the parties can't reach an agreement on this issue.
During a divorce, financial advice from an advisor can help you ensure that the whole procedure is as efficient and inexpensive as possible. It is important that you do your research early on in the divorce process. List down all your marital assets and estimate their market value.
Your marital assets can include:
- Bank accounts
- Life insurance policies
- Tax refunds
- Stocks, bonds, mutual funds
- Loans lent to others
- College funds
- Artwork or antiques
If you're looking for a family law firm in Atlanta that understands your case and helps you figure out the best solution, then look no further. We're here to help take care of the legalities of divorce for you so you can focus on yourself and your children during this tough time. Contact us at (404) 963-9452 to discuss how we may be able to help see you through this process.