The asset possession and distribution you may have during divorce

Asset distribution during divorce
Asset distribution during divorce

After your case is settled down in the court room you feel a little relieved. And this is merely because, it might have months or years the case including the emotional turmoil must have gone in your life.

But, immediately after a few days it would certainly be a surprise to receive a letter rather a notice form your ex-spouse’s attorney indicating the amount of money you owe to him or her or even the asset or property you need to share with.

More than surprise you would certainly not want to undergo another round of roller coaster ride which you thought you are out of.

Some of the assets your spouse can claim her rights on:

  • Your Pension fund: Your spouse can always claim a right on your pension fund even before you have retired from your work. The most surprising thing would be that she can mention a deadline for you to withdraw the money and transfer the same to her account.  In the process, your retirement benefits would get thinner and your pay check after retirement would become lean too.
  • Your property: the Property you built up prior to getting married might not be considered as a part of settlement plan, but, it may largely depend upon the attorney on the other side.
  • Your other savings: Your savings like RRSP also needs to be taken care of because if the same is not settled then it would lead to major tax implications.

The onus on the lawyers

The responsibility lies largely with the lawyers to explain about the implications a divorce or separation may have on your financial position. Even if your lawyer or your spouse or the lawyer from the other side do not raise up many of the issues, you can certainly do so. Some of them are mentioned below:

  • Child Custody: This is an important point in every divorce if you have one. If you don’t finalize it at the time proceedings, you may have to get entangled into something unwanted.
  • House you are living in: You must finalize the fate of the house you both have been living in. Today, your spouse might be quiet but, you may receive a notice about the same asking you to either vacate or give her a share.
  • Debts and unpaid bills: If there is an unpaid debt, then you must settle it down before your divorce case comes to a closure. There could be bills which might not have been paid for months now, it is better you consult your lawyer about this too.

Something as petty as “Electricity Bill” should not pinch you after you are over with the process and thought of divorce. But, to get rid of the entire baggage of the past relationship, it is important that you work smartly and be alert in noting down everything possible that comes to your mind. After all, financial matters need a careful dealing.