One aspect of your post-divorce life that you will want to give careful attention to during the divorce process is your post-divorce finances. Property division and spousal support should be carefully thought out during a divorce, as they can significantly affect your financial standing post-divorce.
Property division in Indiana
Some states in the U.S. are community property states, meaning each spouse shares an equal ownership interest in all marital assets, which are divided equally upon divorce. However, Indiana is an equitable distribution state. This means that while each spouse has an ownership interest in all marital assets, these assets will be divided based on fairness which may not end up being a perfect 50/50 split. You need to make sure you account for property division when developing your post-divorce budget.
Should you keep the family home?
One of the most valuable assets in a couple’s marriage is often the family home. Before fighting to keep the family home you will want to make sure you can afford home ownership on a single income. If you are awarded the family home, you may need to buy out your ex’s share in it, trade it for assets of a like value and refinance. Can you afford to do so on a single income? Likewise, can you pay a mortgage, utility, taxes and upkeep of the family home on a single income. You will want to make sure you consider your post-divorce finances before fighting for valuable assets in the property division process.
Will you pay or receive spousal support?
Spousal support is another issue you should account for in your post-divorce budget. If you are paying spousal support, you will want to make sure doing so will not bust your budget. You may need to downsize to a smaller home or make other financial changes in order to meet your spousal support obligations. If you are receiving spousal support, you will want to make sure it is enough to allow you to support yourself until you obtain the education or job experience you need to become financially self-sufficient. Keep in mind that spousal support is often temporary in Indiana.
Keep finances in mind when divorcing
As you can see, it is important to keep your post-divorce finances in mind when going through a divorce. Property division and spousal support can affect your finances post-divorce, so you will want to make sure you do your research to ensure the process is fair.