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How to prepare financially for a divorce

On Behalf of | Apr 29, 2021 | Divorce |

Ohio is an equitable property division state, which means that you might be entitled to a majority share of a marital estate in a final divorce settlement. However, even if you are expecting to receive valuable assets as part of such a settlement, you’ll still need to make it through the divorce process itself. Furthermore, you’ll need a plan to maximize the value of those assets while living on your own.

How will you support yourself during the divorce proceeding?

Generally speaking, you’re allowed to withdraw up to 50% of the value of any bank account that you share with your spouse. If you need this money to pay legal fees, cover household expenses or pay other bills during a divorce proceeding, withdraw it prior to initiating the marriage dissolution process.

In most cases, joint accounts are essentially frozen once proceedings begin. It may also be possible to sell assets, take a loan from a retirement account or rely on your own personal savings to pay for a divorce.

How will you live after the divorce is final?

It may be in your best interest to meet with a financial adviser at some point before, during or after the divorce has been finalized. This can help you learn more about the potential tax implications of receiving a portion of a joint retirement account or taxable brokerage account.

A financial adviser can also provide insight into the various investment tools that you can use to grow your money beyond the rate of inflation. Finally, this person might be able to help you learn more about basic concepts such as creating a household budget or the importance of compound interest.

It’s generally a good idea to start preparing for your divorce long before the marriage dissolution process begins. An attorney may be able to help you learn more about how to cover expenses during a divorce proceeding and the various ways to reach a settlement. Your attorney may also review a prenuptial agreement, represent you in court or take other steps to help you obtain a favorable settlement.