The issues involved in divorce proceedings can be complex and emotionally charged, making it easy for spouses to make unfavorable financial decisions. Whether you and your spouse have been married for a short or long time, it is essential to be aware of the following Key Considerations in Divorce Proceedings:

1. Determine whether you have separate property.
Many states have laws that classify assets as either separate or marital. The distinction is usually determined by how the asset was acquired. For example, if an inheritance was used to purchase a home, the house would be considered joint property, even if it is titled solely in one party’s name. In some cases, a paper trail may be necessary to determine whether an item is separate or not. This can include account statements, credit card statements, and the like.

2. Evaluate the cost of maintaining the marital home.
In many cases, maintaining a home is not a financially wise choice for divorcing spouses. The cost of upkeep is often much higher than what one person can afford on their own. It is important for both parties to conduct a dispassionate financial evaluation of the property and decide whether it makes sense to keep the home, or if it would be better to sell the property and split the proceeds.

3. Consider the impact of taxes.
In a divorce, it is essential to consider tax consequences in the division of assets and debts. This is particularly important for spouses with a significant amount of investments and other financial assets that could be subject to capital gains taxes upon sale. It is also vital for determining alimony and child support.

4. Documentation is key.
It is essential to compile a list of all of the assets in your estate, as well as an assessment of their value. This will be helpful when it comes to deciding whether to file for a fault or no-fault divorce, as well as in addressing questions related to child custody, visitation and other factors that could influence future decisions regarding the assets and liabilities of the couple. It is also critical to review all insurance policies, including life and health insurance, to ensure the proper beneficiary designations are in place.

5. Be prepared for financial surprises.
Even if you and your spouse reach an agreement about how to divide your assets, it is still necessary to have the details reviewed by a qualified divorce attorney. Verbal agreements made during a stressful time can be difficult to uphold in court and can be interpreted differently by the judge. Therefore, it is advisable to have any agreements filed with the court for future reference.

The financial and emotional impacts of divorce can be devastating for any family, but with careful planning, it is possible to navigate these issues and come out on the other side with a healthy financial future. By working with an experienced family law attorney and keeping these points in mind, spouses can prepare for the best financial outcomes during a divorce.