Divorcing will require you to reassess your finances. There is a good chance you will emerge from divorce financially less well off, even if you are emotionally better off than when trapped in an unhappy marriage.
Understanding some of the long-term monetary issues will be crucial to ensure you are prepared to negotiate divorce settlements. Here are some areas to consider:
Which assets are taxable?
When you divide assets, considering their liability for tax is a must. You need to ensure the split will be fair once you take taxes into account.
You also need to consider how you will file your taxes after your divorce if you have kids. There are certain tax advantages that one person can claim for being head of a household, but you cannot both do that.
What happens if you get ill?
You may need to take out a new individual healthcare policy which could be costly. You need to ensure that one of you has coverage for the children and agree on how you will pay any emergency medical costs the kids incur.
What happens if your ex dies
Even if you consider this would be a reason to celebrate, consider how you will cope if there is no one to pay child support or spousal support. There are insurance policies available to ensure that if your ex cannot work due to illness, disability or death, it will not leave you struggling.
A lot is at stake in a divorce, and it is easy to make mistakes when struggling with the stress of the situation. Getting help from someone who knows the answers will be crucial.