It is an unpleasant reality that one of the most hotly contested issues in a divorce situation is finances. While money may or may not be the “root of all evil”, many Connecticut residents can attest that it tends to bring out the worst in people, particularly when divorce is concerned. This is why it is important for both parties to have an accurate picture of their — and their spouse’s — finances in advance of a divorce filing.
Determining each individual’s total net worth can be a good place to start. Sometimes, individuals will attempt to hide sources of income in order to influence the outcome of alimony and child support rulings. Net worth includes physical assets like homes, vehicles and other major purchases. Of course, many states differentiate between marital assets and pre-marital assets, so it may be helpful to determine what property falls into which category.
Debt works in a similar way. Generally speaking, any debt accrued prior to the marriage is the responsibility of the individual to discharge, while courts are able to come after both parties for accrued mutual debt during the marriage. If both individual’s names are on the agreement, both are culpable for the debt. It can be helpful to try to pay off as much mutual debt as possible ahead of the divorce to help mitigate potential issues further on down the line.
Divorce is a complicated business, made more complicated by the emotions associated with the ending of a marriage. Connecticut residents understand how important it can be to have external support to help work through the logistics of a separation as it pertains to financial matters. Individuals going through divorce may benefit from such support in developing comprehensive agreements that will benefit both parties.
Source: yourhoustonnews.com, “Financial items to consider during a divorce”, Byron W. Ellis, June 21, 2014