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3 types of financial issues that can impact divorce preparations

On Behalf of | Apr 16, 2024 | Divorce

Preparing for a divorce can be a lengthy process. Spouses need to gather financial records and other crucial evidence. They need to start preparing to live separately and to negotiate with one another or present their case and family court.

Some people spend many months preparing for divorce before they ever take legal action. There are certain types of financial matters that might warrant special preparation for someone anticipating a divorce in the near future.

The risk of hidden property

Those with complex marital estates may have a hard time tracking all of their holdings and ensuring a fair distribution of marital property. It is easy for those in complex or high-asset marriages to misrepresent their resources in an attempt to retain more of the marital estate than they should. People may need to go carefully over financial records to look for evidence of hidden assets if they hope to secure a fair outcome to their property division proceedings.

The possibility of dissipation

Individuals preparing for divorce sometimes try to reduce the value of the marital estate. Instead of hiding assets for personal gain, they destroy or waste marital property out of spite. Dissipation takes many forms ranging from the outright destruction of assets to the unnecessary accumulation of credit card debt. Those who believe that their spouse may have tried to reduce the value of the marital estate may have different financial research needs than those who have no reason to worry about financial misconduct.

The expense of adultery

Many divorces occur due to extramarital affairs. Someone who discovers that their spouse cheated likely does not want to stay in that relationship. Cheating doesn’t just damage trust and put the other spouse’s health at risk. It often also has major financial implications. Judges may consider the money spent on extramarital affairs as a form of dissipation. The cost of maintaining a second cell phone, renting hotel rooms or buying gifts for an affair partner could significantly influence the final division of property in a divorce.

Those who are worried about securing appropriate property division terms may need to begin preparing for an upcoming divorce long before they file paperwork with the courts. Holding a spouse accountable for financial misconduct can lead to a more reasonable property division outcome.