If you and your spouse are getting divorced, these are four things to consider before making a big purchase before divorce. When it comes to asset division, things might not always go according to plan, so if you’ve got your eye on something nice, and you’re worried that you might end up sharing it with your spouse, you may want to speak with an attorney who’s licensed in your state and familiar with the specific facts of your case. This way you’ll be getting advice that’s tailored to your exact situation.
Asset Division
How assets are divided will vary from location to location, and your circumstances may also play a part in who’s getting what. However, generally speaking, purchases made after the marriage are considered to be marital assets, assuming they were purchased with marital funds, such as income earned during the course of the marriage. This means that if you go out and purchase a new car, and your divorce isn’t finalized, your ex may have an interest in that car. This is true even if you and your spouse have already completely separated your finances. Legally speaking, you are still married. If you’re looking at making a big purchase before the divorce is finalized, you may want to consider asking your attorney about what you can do to ensure that this purchase is protected. In some cases, it may be better to wait until the divorce is final.
Date of Separation
If you make a large purchase after you and your spouse have officially separated, there’s a chance that your spouse will not be responsible for any debt that’s associated with it, nor will they have an interest in the property either. Each state deals with separation differently, and the definition of separation may vary too. Since there’s no way to know for sure how the date of separation will impact the asset division of your divorce, you may need to speak with an attorney who’s licensed in your state and familiar with your case. In some states, there are no laws regarding purchases made during the marriage but post-separation, therefore, there may not be any guarantees regarding what could happen to secured assets that are technically acquired during the marriage. However, it’s important to understand that making a big purchase prior to the separation may have ramifications.
Will This Make Sense Later?
When you’re making a purchase after your divorce, you may want to consider whether or not your purchase is going to make sense in the future. For example, if your children are all grown up and out of the house, you may not need a six-bedroom home, especially if you’re the only one living there. You’d likely save more money by purchasing a smaller two-bedroom home. Plus, you may find that you’re going to be much more comfortable, financially speaking, if you go with a smaller home. The same is true for cars—is now really the time to buy the luxury car of your dreams? If you know that you want to get married and have more children in the future, having a sports car with room for only one passenger may be a problem that you’re committed to until the car is either paid off, or you’re able to sell it. In some cases, downgrading your house or car may affect your alimony payments.
Finances May Be Worse
After you get divorced, you may be in a very different situation, financially speaking. Getting divorced often means going through a difficult transition when adjusting to life on a lower income. Many people find that their bills stay relatively the same while their income is significantly decreased. Something that sounds affordable at the moment may not actually be affordable once you get divorced. You can prevent this from happening by making a budget and sticking to it for a few months after your divorce is finalized and your expenses have stabilized. This can prevent you from making a financial commitment that will become overwhelming on a reduced income.
When You’re Considering Divorce
If you’re considering divorce, you may be wondering whether or not you’ll need an attorney to complete your divorce, or whether you can file for divorce using a do-it-yourself divorce platform like SimpleEnding. Depending on your situation, you may need an attorney. To help you determine which way you should go for your divorce, attending an initial consultation with a divorce lawyer who’s licensed in your state may help. Contact CoilLaw today to set up your initial consultation.
