Getting Divorced? Dividing The Spoils
Take care of the details to keep it simple.
If you’re getting divorced then agreeing the split of money and things is going to be a big part of the process. Everything you’ve accumulated during your life together will need to be separated, which entails not just the splitting up of investments, accounts and property but also dividing it fairly. After all, if there isn’t a fair division you could find one partner ends up in debt or with a poor credit record and needing to find loans for people with bad credit or need a guarantor loan. So if you’re facing the prospect of divorce then how do you go about dividing the spoils fairly so neither partner is disadvantaged?
Step 1: List all shared assets
Create a comprehensive list of everything that might be considered a joint asset and have to go through the process of being divided up. This could be savings accounts and any property that you own jointly, as well as pension benefits accrued by one person while the other stayed at home with the children.
Step 2: List all shared liabilities
It’s not just the assets that need to go through the process of being split but liabilities too. Credit card debts, shared overdrafts and mortgages all need to be either paid off or split so that there is a fair balance of assets and obligations. When you’re dividing the spoils during a divorce, who gets what will be dependent on what is left after joint debts and liabilities have been dealt with.
Step 3: Accounting for children
If you’re divorcing with children then prioritising their interests can make it easier to deal with the financial aspects of the divorce without too much conflict. Both parents tend to want the best for their children so making them the focus when you’re dividing up the financial spoils can elevate discussions from the purely emotional to what needs to be done practically.
Step 4: Try to agree the financials without lawyers
If you don’t want to reduce the spoils that you have then try to steer clear of getting lawyers involved until the last moment. Disputes over assets can get very expensive when you have to factor in the lawyer’s fees. Even if you end up with more in your name at the end of the process you’ll see this whittled down to cover those additional rates.
Step 5: Don’t forget the little things
When you’re divorcing then absolutely everything needs to be taken into account when it comes to dividing up who gets what. Once the main assets are accounted for there could still be many other smaller things that need to be agreed – and sometimes these can be the most contentious of all. Furniture that you purchased for a shared home, the CD collection you’ve built up over the years or all the vintage crockery that was a wedding gift – these are just a few examples of “details” that will need to be taken care of.
Step 6: Future plans count too
Have you already booked your summer holiday? Or skiing for next Christmas? When you’re separating those spoils don’t forget to take into account any future investments that you’ve already made together. The chances are that future plans made together now won’t include you both so one person might need to be compensated.