Divorce is a life-changing decision that can have significant financial implications. If you are considering filing for divorce in Indiana, it is crucial; to assess your financial situation carefully. This blog will address some important considerations to think about before filing for divorce.
Make a comprehensive list of all marital assets to assess your current assets and debts. This list should include real estate, vehicles, bank accounts, retirement accounts, investments, and valuable personal property. Also, document all debts, such as mortgages, car loans, credit card balances, student loans, and personal loans. Understanding your complete financial picture is essential for fair asset division.
You must understand Indiana’s property division laws. Indiana follows an “equitable distribution” model, which does not necessarily mean 50/50 split. Familiarize yourself with how the court determines fairness in property division. You should also assess your current income and earning potential by considering your current salary, future earning capacity, and need for additional education or training to increase your earning potential. This information is crucial for determining potential alimony for maintenance payments.
You should also estimate your monthly expenses after divorce, including housing costs, utilities, food, transportation, healthcare, and child-related expenses (if applicable). This will help you determine if you can maintain your standard of living post-divorce. It is important to know how the divorce will affect your taxes. You should consider changes in filing status, potential tax implications of asset division, tax consequences of selling the marital home, and changes in deductions and credits. Consult with a tax professional to understand the full impact.
Consider what will happen to your retirement account. Understand how your pension, 401(k), or IRA might be divided. You may need a Qualified Domestic Relations Order (QDRO) to split certain retirement accounts. Ensure you have a complete understanding of your spouse’s income, assets, and debts. This includes any hidden assets or accounts. Determine how you will manage shared debts post-divorce. Remember, creditors can still come after you for joint debts even if your divorce decree assigns them to your ex-spouse.
Will you need spousal support or will you be expected to pay it? Consider factors such as the length of the marriage, each spouse’s earning capacity, and standard of living during the marriage. If you are on your spouse’s health insurance plan, research options for coverage post-divorce, including COBRA or individual plans. Create a realistic budget based on your expected post-divorce income and expenses. Factor in potential costs associated with divorce such as attorney fees, court costs, mediation expenses, and expert witnesses.
By carefully considering these financial questions, you will be better prepared for the divorce process and your financial future post-divorce. Remember to consult with a qualified divorce attorney and a financial advisor to get personalized advice for your situation. The attorneys at Ciyou & Associates, P.C. have ample experience with divorce proceedings throughout the state of Indiana. We are here to help you navigate your divorce. This blog was written by attorneys at Ciyou & Associates, P.C., and this blog is not intended to provide specific legal advice or solicitation of services as this is an advertisement.
