3 Ways To Financially Protect Yourself During A Divorce

Approximately 50% of all marriages end in divorce, and many of these individuals will end up with financial problems shortly afterwards. If you are currently going through a divorce and are afraid that you will suffer financially, you should talk to your lawyer about the following three things:

Child Support

If you will obtain custody of the kids, your ex-husband will be required to pay child support. Unfortunately, there are many dads that fail to keep up with this obligation, and you should fight in advance to make sure you get this money.

One of the best strategies to use is to request wage garnishment for the child support. This method works well if your ex receives regular paychecks from a steady job. Through wage garnishment, his employer will be required to deduct the support amount from each of his paychecks. The employer must then send it to the court, and the court will transfer it into your bank account.

Liquidation of Assets and Debts

Another way to financially protect yourself in advance is to request liquidation of all assets and debts. If you have a lot of debts, you might want to talk to your lawyer about filing for bankruptcy; however, this is not always a good option.

Liquidating all assets is not always the right option, but it might be in your case. If you own a lot of properties, vehicles, or expensive collections, liquidating will help you get cash in your pocket shortly after the divorce occurs.

A common financial problem after divorce is a lack of cash, and that is why liquidating might be right for you. If you can get out of the marriage with cash in the bank and no debt, you may have an easier time surviving on your income alone.

Tax Deductions

The third thing to discuss with your lawyer is about tax deductions. According to Nolo, in 2014, the IRS allowed a $3,950 tax deduction for each dependent a person has. If you have the right to claim your children, you could end up owing less money in taxes, and this might help you receive a decent tax return. This extra money could help you survive easier after your divorce, and this is something that is negotiable during a divorce.

Before you rush out and file for divorce, it's important to think of the financial implications this will have on your life. If you know what to fight for, you might have a better chance of surviving financially afterwards, and your divorce lawyer might be able to help you find other ways to financially protect yourself. For more information, contact a local law office, like Madison Law Firm PLLC.