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Effectively managing assets and surviving property division

Dividing one's assets and property while being emotionally distressed can be considered a lethal combination. However, many couples do just that in a divorce. In order to finish the divorce process as soon as possible, they take what they can or what is given to them and wish for the best. At times, the outcome is not as rosy as expected. Financial expectations fall short, which makes it harder to start a new life.

Despite this, spouses in Missouri could avoid the financial ruin by effectively managing assets and finances during the property division phase of dissolution. First, a divorcing spouse can start off by clearly identifying property, assets and liability. Marital property from separate property should be defined. Debts should be disclosed as well. If a spouse suspects that a soon-to-be former spouse is hiding assets, a family law professional's assistance may be necessary. Before property division, all cards must be laid on the table.

Second, consider retirement needs and life insurance. Divorce is a life changing situation, so it is important for a spouse to be financially secure especially in the long-run. Do not forget to include retirement plans in the mix when dividing assets. Also, change beneficiaries to suit the situation. Insurance is important as well, especially if a divorcing couple has children.

An updated life insurance policy can help secure the financial standing of young children during the untimely death of a parent, since it may result in the loss of child support or alimony. Three, do not forget about tax implications. A spouse should be aware of the tax implications of selling or keeping business assets and property.

Finally, a divorcing spouse should prepare for the monthly expenses of living separately. Creating an emergency fund can help make sure that one has enough money for the future as well. It can also be used to jumpstart a new life.

Finances are a major factor in dissolution and will often control the life of a spouse during divorce and post-divorce. It is crucial that they understand what they can do to better their situation and how they can protect their rights.

Source: Investopedia.com, "How To Manage Your Finances Through A Divorce," Leslie Kramer, May 16, 2014

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Joseph J. Porzenski
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