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| Capitalstars Investment Advisor |
Divorce can be painful but you should not let it wreak havoc with your finances. A woman should keep a few things in mind to ensure she is financially safe. This includes hiring a financial planner and gathering all the necessary documents. Here are six financial tips that women should keep in mind before a divorce.
Gather documents in time
The moment you realize that trouble is brewing in your marriage, get hold of all financial documents, including salary statements, rent receipts, property documents, household items receipts, monthly spending proof, proof of asset ownership, etc. If you leave it for later, the husband may make it difficult for you to access these.
Put away your assets
Identify all the assets like jewelry and household items in your name and put these away in a safe place, say, in your individual locker or with your parents.
Hire a financial planner before a lawyer
To ensure you get fair maintenance, hire a financial planner before a divorce lawyer. It’s important you arrive at the right figure by taking into account inflation and future expenses to be able to maintain your lifestyle after divorce.
Take alimony as a lump sum
It’s better to opt for a lump sum instead of a monthly payout because the former is non-taxable and rules out the erosion of wealth due to inflation. If you opt for monthly payouts, ensure it is pegged to inflation and increases every year.
Maximize liquid assets, cut your liabilities
Try to get as many liquid assets as possible because it offers flexibility in rebooting your financial life after divorce. If you insist on securing a house but have no money for running the household, you will be in trouble.
Alimony & child maintenance are separate
Understand that the money you require for household expenses and maintaining your lifestyle is different from the money you will need to bring up your child. Factor in the future child goals like education and wedding expenses as well.