Secrets to Maintain Self-Respect and Finances during a Divorce Mediation Process

1
Secrets to Maintain Self-Respect and Finances
during a Divorce Mediation Process
2
INTRODUCTION

• At the start, a marriage is a joyous and happy
  event for the people involved. At the time of
  saying I do, most couples never imagine that
  this newfound bliss might one day turn into
  despair and anger. Sadly, however, this is the
  reality these days. Marriages may turn into one
  of the most difficult parts of your life. If you
  are facing a divorce, here is how to maintain
  self-respect and protect your finances.

3
Table of Contents

• Before Divorcing
• During the Divorce
• Divorce and Bankruptcy Things to Tell Your
  Divorce Attorney Beforehand
• Child Custody
• Financial Documents
• Assets Division and Debts
• Spousal Support
• Child Support
• Navigating High Net worth Divorce Complications
  You Should Be Prepared to Handle
• Hiding of Assets
• International Complications
• Tax Implication
• Business Ownership
• Parting Thoughts

4
Before Divorcing

• 1. Open a Bank Account
• If you had a bank account prior to marriage, make
  sure the money is kept separate from the joint
  account that you have with your spouse. As long
  as it is not combined with your spouses money,
  you remain the legal owner in case of a divorce.
•  
• But if you only had a joint account with your
  spouse, this is the time to open yours and start
  putting money into it. Your partner cannot drain
  personal account the same way they could your
  joint account. However, you need to know that if
  you reside in a community state, any amount going
  into this account will be deemed a marital
  property unless you first establish a formal
  separation date.

5

• 2. Establish Separation
• This step is very important especially for those
  in a community state. After establishing a date
  of separation, it will become impossible for your
  spouse to stake claim to your income or any new
  assets that you acquire using that income.
•  
• Moving out is one way of establishing separation.
  Whether you move into a separate apartment, your
  parents home or into a new home, you are making
  it clear that the two of you are not functioning
  as a couple anymore. Your ex cannot touch any
  income you receive after this date.
•  
• 3. Establish Credit
• Do not allow your partner to be a joint holder or
  a user to this account. Also, use the card wisely
  and avoid running up huge bills. The card might
  come handy in times of emergency.

6
During the Divorce

• 1. Filing for a divorce
• Your best bet is to contract a high-quality
  lawyer. Although they charge high fees, note that
  the stakes are even higher. But a top-range
  lawyer is not necessary if you are pursuing the
  option of mediation.
•  
• 2. Change all Account Passwords
• Your social media, financial, and email passwords
  should all be changed as soon as possible. When
  choosing a new password, ensure it does not have
  anything to do with your life as a couple.
•  
•  

7

• 3. Limit Access to Joint Accounts
• Remember also to review all your accounts and see
  which accounts are joint accounts. There are
  times when it will be impossible to close the
  accounts until you reach a divorce settlement.
  But you are free to talk to the institutions that
  you hold the account and let them know of the
  situation. They could help you limit account
  access thereby preventing them from being
  depleted.
•  
• Conclusion
• During the divorce proceedings, it is important
  to carry yourself appropriately. Refrain from
  speaking angrily and saying things that might be
  used against you. Do not threaten your ex and
  also avoid running up massive bills with the
  joint accounts. Also, do not have conversations
  with your ex alone during proceedings. If you
  must have any contact, make sure you do it in the
  presence of a third party or a representative. If
  you conduct yourself in a manner that is above
  reproach, your chances of receiving concessions
  during a divorce will be much higher, especially
  if your spouse behaves poorly.

8
Divorce and Bankruptcy Things to Tell Your
Divorce Attorney Beforehand

• If you have never undergone a divorce, there are
  chances that you not aware of what are in store
  for you. Hiring a reasonable divorce attorney is
  not a ticket to a smooth divorce process. Once
  you get yourself a qualified lawyer, there are
  things you need to discuss with him or her at
  length, especially if you are bankrupt.
• Once you schedule that first meeting, put him in
  the know of how you want things to be done. Let
  us take a look at some of the essential things
  you should discuss in detail with your attorney
  to make your case manageable.

9
Child Custody

• There is no doubt that this is among the highly
  contested issues during a divorce case where
  children are involved. Talk to your lawyer if you
  would prefer being granted custody. Know that
  there are two types of custody legal and
  physical. Remember the court may take into
  consideration your bankruptcy while making a
  ruling. After all, the child's welfare comes
  first. If your spouse is not bankrupt, it is most
  likely that you will carry the day.

10
Financial Documents

• In most divorce cases, finances are the biggest
  issue. Tell your attorney the truth about your
  financial situation. Telling him by mouth that
  you are bankrupt is not enough. Provide evidence
  to support your sentiments. Gather all the
  necessary information and documentation and bring
  them on board. It will provide your lawyer with
  all the information he needs.

11
Assets Division and Debts

• Everything you acquired while living together
  will be up in the air for the divisionwhether it
  is cars, houses or land. Let your lawyer know
  what you would like to keep so that he can fight
  for them. Likewise, any debts accrued during your
  time together will also have to be looked into.
  Your partner may want to evade it, so be smart
  and let your attorney get a step ahead.

12
Spousal Support

• This is one of the controversial parts of the
  law. If your attorney can prove your bankruptcy
  in court, you can ask for reimbursement alimony
  since you became bankrupt while in that marriage.
  Do not forget to discuss career goals and the
  time it will take you to achieve them and your
  financial needs as they will also play a part in
  determining the support you will get.

13
Child Support

• Legally, both parents should provide financial
  support for their kids. It is upon the parents to
  agree on how they will be contributing.
  Otherwise, the court will rule about it. Some
  spouses may take advantage of the situation and
  ask for more than what is required. If your
  lawyer understands that you are bankrupt, he will
  present it in court, and the ruling will most
  likely favor you.
• As we all know, divorce can be so complicated. It
  can drain you physically and financially.
  However, hiring a good divorce attorney and
  telling him the truth about the things discussed
  above beforehand is synonymous to half winning
  the case. Remember, they are human, so they
  largely depend on the information you provide to
  them. If you tell the entire truth, you will be
  good to start.

14
Navigating High Net worth Divorce Complications
You Should Be Prepared to Handle

• Ever heard of an easy divorce? I bet notsome
  complications often arise during the process. It
  worsens if the divorce involves high net worth
  people. This is because a lot of property and
  finances are involved. It becomes tedious,
  resource-intensive, and even dramatic.
•  
• If you are navigating a high-end divorce, here
  are some of the complications you are likely to
  handle.

15
Hiding of Assets

• During a divorce, partners fill in forms showing
  all the assets they possess. Some partners can be
  devious and decide to hide some of their
  properties to cheat their spouses out of fair
  finance sharing. In most cases, the assets are
  transferred to a third party or funds transferred
  to different accounts. Stay alert and if such
  cases arise, arm yourself with evidence and
  discuss it with your attorney. Considering that
  this is a punishable offense, such a partner will
  end up losing credibility or even facing charges.

16
International Complications

• Most people who have high net worth tend to have
  businesses outside the state or abroad, not to
  mention that most of them live international
  lifestyles. They may have two or more
  citizenships. This gives them access to multiple
  jurisdictions. Disagreement can ensure on which
  authority is most suitable to handle the divorce.
  In cases where a partner has companies abroad,
  you may need to engage the services of a
  financial forensic team to help fish out the
  company's assets that may be hidden elsewhere.

17
Tax Implication

• Most people find tax topics annoying. They do not
  understand that significant tax implications are
  bound to arise during property distribution. For
  example, if one partner owns a business, and they
  are supposed to transfer an asset such as a car
  or land to their spouse, certain tax liabilities
  will be triggered. The spouse receiving the asset
  should understand that they will be taxed, thus
  raising their expenses.

18
Business Ownership

• It is not abnormal to find that couples with high
  net worth jointly owning a family business. They
  tend to invest together during the marriage
  duration. Once they divorce, such companies
  become a Centre of conflict. The company's value
  and future have to be determined to enable a fair
  distribution. Partners may continue co-owning the
  company. If their differences cannot allow, one
  partner may have to sell their shares to exit the
  scene altogether.
•  

19
Parting Thoughts

• No doubt navigating a high net worth divorce can
  be tiresome, and if not well handled be so messy.
  A lot of money makes emotions run high and
  creates high tension. They can also be time and
  resource-intensive. Do not rush into this
  divorce, take your time, analyze everything
  thoroughly, and never be driven by your emotions.
  
• See more at _at_ https//www.eidelmanassoc.com/Mediat
  ion-Services/divorce-mediation/