Financial Information You Should Have During A Divorce

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Many people know they need an inventory of their assets when approaching divorce. However, the identity and value of your assets are not the only information you need during a divorce. You need an accurate picture of your finances to get a good divorce settlement. Below is some information you should have.

Your Spouse's Income

Know your spouse's income from all sources. For example, include the day/main job, business, and bonuses. The income will affect four main aspects of the divorce:

• Child support
• Alimony
• Asset division
• Debt division

For example, your spouse's income determines whether they can help meet your financial obligations after divorce. A great disparity between your spouse's and your income increases your chances of getting good spousal support.

Your Marital Budget

You should also know your marital expenses or budget. Don't focus on the last few months leading up to the divorce because they might not reflect your accurate budget during the marriage. Consider your lifestyle over the past year or so for a better approximation.

The budget estimate forms the basis for your alimony quest. For example, the court might not grant you a 5000-dollar monthly alimony if your lifestyle shows a monthly budget of $1,000. Prove why you need the alimony you request.

Your Debts

Many people focus on assets during divorce, but the debts are just as critical in determining your financial strength after divorce. Account for all debts whether you think your spouse is responsible for them. For one, your debt value determines the value of the assets you have to divide since you will use some assets to settle the debts.

Secondly, the amount and value of the debts determine who pays for them after the divorce. In addition, you might share debts your spouse signed for them as an individual if the money benefited the whole family. Thus, you really cannot afford to be ignorant about the debts.

Your Income Potential

Lastly, you should also have an accurate idea of your income potential, especially if you want alimony. Courts nowadays gravitate towards rehabilitation alimony, especially for those divorcing while young.

Rehabilitation alimony improves your income, so you don't have to depend on your spouse. You will only get a good package if you can prove how much you need, what you need it for, and how it will help. For example, you may need to prove your need to go back to school and improve your income prospects to get an alimony package that can fund your education.

For more information, contact a firm like The Ritchie Law Group.

1 June 2023