Tracy Coenen, CPA, CFF, MAF
Tracy has been finding money for over 25 years as a forensic accountant and fraud investigator.
What Are You Entitled To In Your Divorce?
Women ask me all the time: “What will I get in my divorce settlement?”
Of course, every divorce is different and the specifics of the laws vary from state to state. Many states follow “equitable distribution” rules, while a handful of states are “community property” states. This distinction will impact what you are entitled to in your divorce.
So… how this turns out for you could be different from how it turns out for your girlfriend or neighbor. But let’s talk in general…
Fearful and angry husbands will say mean things during a divorce.
Fearful and angry husbands will say mean things during a divorce.
I know that you’ll hear things like:
- You’ll never get a penny from me!
- The 401(k) is all mine.
- You will never be able to touch my pension!
- I worked and earned all of the money while you just stayed at home with the kids.
- I bought this house and everything in it. It’s mine!
- You won’t get any alimony or child support.
- I’ll quit my job before I pay you a dime.
- You contributed nothing, so you get nothing.
It’s not true.
Money that either of you earned during the marriage is part of the marital estate, and so is anything that was bought or saved out of that money you each earned during the marriage. This includes the house, furniture, cars, savings accounts, investments, and retirement accounts. They belong to BOTH of you.
There may be things that you are NOT entitled to get a share of in the marriage, and the same could go for your husband. For example, if you receive an inheritance and keep it in a separate account, your husband most likely will not be able to touch that in the divorce.
Assets that either of you had before you got married might not be part of the marital estate too, but how that works out will depend on your state’s laws. If you have a prenup, some of the assets or income could also be excluded.
It is important to also remember that debts are divided in the divorce too. So if a loan was taken out or a credit card was run up, you will probably be responsible for part of that debt in the divorce.
Too many women walk away from their share of the business without even knowing what it is worth. Or her ex tries to entice her to settle by saying that she can keep the family home if she doesn’t touch the business. But if you don’t know how much the house and the busines are each worth, you could be getting cheated.
Don’t let him bully you into agreeing to something like this without all of the information.
The issues of spousal support (sometimes called alimony or maintenance) and child support get people very emotional. Are you entitled to receive support? For how long? How much? Will you be able to survive financially?
Spousal support is not automatic. You have to ask for it and you have to prove how much is needed. In some states, spousal support is very difficult to get. It is also difficult (sometimes impossible) to get spousal support for short term marriages. These can be difficult facts to hear.
Support issues are such an important part of the divorce settlement. And because support payments don’t last forever, it’s critical that you think beyond just your current expenses and plan for the future.
Start by making a list of your marital assets and debts. Keep track of who is getting which account or item, and add up the total value that each of you is getting. In the end, one of you may end up making an “equalization payment” to the other to even things out.
The ultimate goal is for you to get the best possible financial settlement in your divorce so you can move on post-divorce with financial freedom and security. Don’t wait. You need to start understanding your family’s finances NOW.
