Divorces can come with a lot of financial uncertainties, even in high-net-worth marital splits. However, the stakes are often higher for the nonearning spouse, especially without a prenuptial agreement.
If you are a nonearning spouse, you may be wondering what your finances will look like after the separation. Having a high net worth as a couple does not always guarantee financial security after you and your partner go your separate ways.
There can be a lot of unpredictability in terms of property division, but here are a few ways you can protect your financial future.
Understand your financial situation
First, gather all your financial documents to get a better understanding of where you stand. Doing so can help you figure out what kind of income you can expect when you and your spouse separate. More importantly, understanding your financial picture can guide your negotiation decisions.
Seek legal advice
Whether you have a prenup or not, it’s important to have a legal professional to guide you through the division of marital assets. They can help you seek whatever you are entitled to in the divorce, which can include:
- Marital assets: Properties and financial resources acquired during the marriage.
- Spousal support or alimony: Payments to support you after the divorce.
- Child support: Payment to support your children’s living expenses, if applicable.
- Insurance coverage: Continued coverage for your or your children, if applicable.
The support and guidance of a legal professional will be invaluable especially when you’re in the middle of a high net worth divorce. You will need a bigger and clearer picture of your financial standing.
Work with financial and career professionals
Financial and career advisors can help you gain a better footing as you become financially independent. A financial advisor can teach you how to manage and invest what you have after the divorce.
On the other hand, a career advisor can help you look for employment, which can increase your financial independence even further.
Start preparing as early as you can
As a nonearning spouse, early preparation can make all the difference in a divorce. Realistically, you may have limited career opportunities due to the employment gap and you cannot be sure if the division of marital assets will provide the financial cushion you need.
Even so, a legal professional can help you understand your rights and what you should receive in the divorce. This guidance can be crucial in securing your financial future, especially if your choices are limited right now.