As many Texas readers know, it is important for couples going through a divorce to have a clear picture of both their current finances and the financial needs they will both have once the process is final. There are many factors to consider in divorce and it is easy to overlook issues, particularly in cases involving complex property division. It can be complicated and expensive to revise a divorce order, so it is to everyone’s advantage to make certain that nothing is overlooked in the initial agreement.
There are several items that need to be taken into account during settlement negotiations. Many couples overlook their joint liabilities. For example, credit cards that are jointly held should be cancelled and large joint liabilities, such as a mortgage or car loan will need to be refinanced into the name of the party taking over the obligation if at all possible. Another often-overlooked area of finances are the financial needs of both spouses following the divorce.
In the event that one spouse has an immediate cash flow need, he or she would want to obtain assets that could be sold quickly including mutual funds, bonds and stocks. On the other hand, if immediate cash flow is not a problem, then it might make sense to retain a variety of assets.
A lawyer with a background in high-asset divorce and complex property division may have an understanding of issues that are frequently overlooked and may help a spouse prepare his or her finances and records for an upcoming divorce. In addition, a lawyer may have connections with financial experts such as forensic accountants who might discover hidden or secret assets.
Source: Forbes, “6 Money Matters Divorcing Spouses Often Overlook“, August 19, 2014