Divorce can be an emotionally traumatic situation, but it can also have a significant impact on your personal finances. If your spouse was the sole breadwinner, you may be anxious about your financial future. On the other hand, if you were the provider or have higher earnings than your spouse, you may worry that your spouse will try to take a disproportionate share of your assets in the split.
Regardless of which side of the financial picture you come down on, everyone facing a divorce wants to obtain the best outcome in terms of financial freedom. There are a few key ways you can protect your assets in a divorce, and if you make an effort to employ these strategies, you can have a better chance of coming out ahead.
Take emotions out of the picture
It is no secret that divorce can be a heated emotional battle filled with anger, resentment and a desire for revenge. However, when you let your emotions guide your decision-making during your divorce, you are likely to make choices that are not in your best interest. Find healthy ways to deal with your divorce-related emotional needs so that you can be rational, logical and objective when it comes to negotiating assets.
Understand how the law divides your marital assets
Every state has different laws governing how to divide assets during a divorce. Tennessee, for example, uses the principle of equitable division in divorce because it is not a community property state. The courts will take various factors into consideration to determine who gets what and how much. However, some property is not included in the category of marital property, and it is important for you to understand what assets are yours to keep regardless of other negotiations.
When facing divorce, there is too much at stake for you to neglect the particulars of asset division. Ensure that you know the specifics of your asset profile and how the courts are likely to divide your marital assets, so you can make a strategic plan for your future.