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Financial considerations for property division

On Behalf of | Jun 21, 2024 | Divorce

People who are going through a divorce have to divide everything that they amassed during marriage. If they have a prenuptial agreement in place, that’s what they’ll follow. If there’s no prenuptial agreement, they have to work out the property division agreement. 

One of the biggest adjustments during a divorce is learning how to take care of bills on a single income. Figuring this out quickly is imperative because it can have a primary role in the property division process. 

Write out a realistic budget

Before considering anything related to property division, it’s best to have a realistic budget set. It should be based on realistic figures, including income and bills. Because there are extra expenses with divorce, those must be included in the budget. These might include the marital debts that aren’t paid by asset liquidation.

While some people going through divorce will receive child support or alimony, it’s best to avoid putting those in a budget. There’s always a chance that these payments will be delayed or not ever show up.

Consider the comprehensive costs

Some assets have ongoing expenses that have to be considered. For example, the marital home may have a mortgage, insurance, upkeep costs and property taxes. Because the comprehensive costs of some assets can add considerably to the budget, it’s best for divorcees to learn about them before accepting a settlement.

The property division process can be complex, especially for people who have considerable assets. Thinking logically about these decisions may make them easier. It may also be beneficial to work with someone familiar with this process that can help divorcees to make decisions in their best interests.