Divorce and financial considerations

On Behalf of | Aug 11, 2021 | Family Law |

Divorce can be an emotional time for all involved. However, neglecting to follow up on important issues can affect your finances once your marriage has ended. There are a few areas that are easy for people to overlook when trying to resolve disputes and figure out custody arrangements. Here are some things you should know about financial planning during and after divorce in Wisconsin.

Bank accounts

You should make sure your title and mortgage are handled appropriately during the divorce. The house is usually the largest asset divorcing couples have. If the marital home needs to be sold, remember that there is a significant capital gain that you must account for.

Take a look at the mortgage. Is only one spouse listed, or does one spouse need to be removed from the liability? Resolving this could be easier said than done. Most banks will require you to take out a new loan in the name of the spouse who keeps the home. If the person who gets the home doesn’t qualify for a new loan, this may be an issue. Banks allow exceptions for several reasons, but the process may involve receiving new financing. Be sure not to take your name off the home’s title until the liability is released.

Insurance

During the divorce process, you may find that you have more home insurance than you need. Sometimes, casualty and property policies may be issues in your spouse’s name. This often applies to homeowners’ insurance. If you receive property after a divorce, make sure your name is on the policy if you ever have to file a claim.

Your car insurance may increase as well. Many insurers offer marriage discounts and lower premiums. Be sure to remove any stacked coverage if you no longer have two vehicles in the household.

There are lots of issues to consider during a divorce, especially financial ones. If you and your soon-to-be-ex cannot come to an agreement among yourselves, you may need to hire an attorney.