Divorce: How to Get It Right, and Get on with Your Life

Dividing money is a painstaking and significant part of the divorce process. Making an irrational decision can cost you dearly. Try to distance yourself from the emotional storm and view your marriage as a business.

Think of the obvious, and then beyond.
Your first task is to inventory all assets that you and your spouse acquired during the marriage--known as "marital property"--as well as everything that you and your spouse may own separately. Joint savings, investment and retirement accounts, jewelry, and real estate are some examples of assets that come to mind. Assets that are exclusively in your name or your spouse's may or may not be part of the marital pot, depending on the law of your state and how and when they were acquired.

You and your spouse may also share some potential big-ticket items that you haven't considered. Do you own a business? If so, you may have to give your spouse a share and even pay for an accounting expert to determine its value. Even something as esoteric as an academic degree can be worth more in divorce court than the actual value of your paper diploma.

Watch out for hidden assets
Attempting to uncover assets that your spouse may be intentionally concealing can be a costly and excruciating process. Perhaps she withdrew cash from your joint bank account and stashed it in a safe deposit box. Or maybe he's holding hard-to-find income in another name. If there's a large sum of money at stake, consider hiring a forensic accountant (you can learn more from the Forensic Accountants Society of North America). These financial professionals are qualified to investigate your marital finances and present their findings as part of your case. But first decide if the professional fees will cost more than the value of the asset.

Don't forget your debts
Your total debts are just as important as the value of your marital estate. Add up your credit card debts, car loans, mortgage balances, and home equity loans. Check your credit reports and ask your lawyer to search for any unknown judgments against you and your spouse, as well as liens on your home. You should also determine whether your spouse made any unauthorized purchases on your credit cards.

Next: Dividing Assets, Part 1 >