Financial issues in a divorce are one of the most important aspects to consider when you are looking to end your marriage. While divorce can be emotionally taxing, it can have significant financial implications both in the short and long term for the divorcing couple as well as their family.
Knowing what these financial issues are will help you create a plan for securing your finances and ensuring that your quality of life does not decline during and after divorce.
Podcast on Common Financial Issues in Divorce
Here are the six money issues in divorce that couples need to consider:
Six (6) financial issues in divorce
Managing joint accounts
Many couples choose to set up a joint bank account and combine their finances when they get married. A joint account can be one of the top reasons for money issues in marriage and divorce.
In case of divorce, one partner withdrawing money from the joint account without coming to an agreement on the same with the spouse can be tricky.
Joint bank account funds may also be considered matrimonial assets as money acquired by one party during the marriage is deemed to be a matrimonial asset.
Change in income
A divorce typically can entail a change in income, particularly when the couple was pooling in the financial resources when they were married.
Whether you are receiving or paying maintenance, working or unable to work post-divorce, changes in income are bound to be one of the crucial money issues in divorce.
Reputed divorce lawyers in Singapore urge couples considering divorce to evaluate if their income, independent of their soon to be ex-spouse’s, would be enough to meet the monthly expenses.
Marital Assets division
Any assets that the couple acquired when they were married are considered marital assets. In some cases, assets acquired by one or both partners before the marriage, used or enjoyed by the couple after marriage can also come under the category of marital assets.
This could include a family home or a car as well. It is important to remember that the marital assets are not equally divided by default.
The court looks into many factors, including prenup agreements, the needs of the children, if any, and the direct financial contribution made by the parties to acquire the assets before dividing them.
Financial issues in a divorce can also extend to living arrangements after the marriage ends. Housing is one of the challenging transitions the divorcing couple needs to work through.
While they may decide to live together in the same home after the divorce to save costs, many times, this is not possible.
When living separately, it is important to ensure the dependents, including children, have stable accommodation so that their normal routine is not disturbed.
Debts of one partner
Conflicts often arise when one partner has a debt and the other is debt-free. When it comes to dividing the debts in a divorce, the courts distinguish between joint debts and individual debts.
The latter refers to one partner’s debts such as gambling, credit card debt, or any other loan taken for personal benefit.
Joint debts are those acquired for the family or children’s benefit, such as mortgage or home renovation loans.
It is possible for one partner to indulge in financial abuse by forcing the other into an unjust or unfair divorce settlement.
The partner may employ tactics such as withdrawing money much before the divorce from the joint account or maximizing the credit card limit of the partner’s credit card.
They could also be refusing to share household expenses or cooperate for mediation.
Are you unsure about the division of assets or other financial issues in divorce? Consulting an expert expert divorce lawyer is the best way to ensure that your rights and interests are protected. Please get in touch with us today to arrange for your consultation.
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