Divorcing spouses should have financial accounts in order

The property division process has a significant impact on divorcing parties as it determines their financial standing after the dissolution of their marriage. It is therefore important that those going through a divorce have a good grasp on their assets in order to fight for what they are entitled to when the assets are divided.

The importance of money during divorce proceedings was outlined in a recent article. Since money is involved in alimony and child support orders, as well as property division proceedings, it is critical that parties to a divorce have their finances in order at the time of a divorce. The article offers some advice on how to do so including keeping all financial documents organized, understanding what types of accounts someone has, how much money is in each of them, and opening separate accounts to hold income earned after the couple started the divorce process.

As mentioned above, money is often at the forefront of divorce proceedings due to its influence on various aspects, most notably property distribution. The way property is divided is based on the state where a divorce occurs. In Georgia, the equitable distribution method is applied. Under this method, property is classified as either marital property or separate property. Marital property is any asset that was accumulated during the course of the marriage. Separate property, on the other hand, is all property brought into a marriage or acquired by either party through gift or inheritance. Once the property has been classified appropriately, the marital property is divided between the parties based on what is fair under the circumstances of their case, but not necessarily equally.

It is critically important for both parties to a divorce to have their finances in order to help the divorce and asset distribution process go as smoothly as possible and to ensure that each party receives all assets to which they are entitled. A family law attorney can assist those going through a divorce with the property distribution process.

Source: Huffington Post, "Divorce Confidential: The Importance of Being Financially Savvy During Divorce," Caroline Choi, April 18, 2014