The development of a budget is always a priority part of any divorce, says our experienced Stamford divorce lawyer. Financial knowledge is a necessity if the divorce process is to advance to ultimate dissolution of the marriage whether the divorcing parties have an abundance of financial assets or not much more than their clothes. If substantial wealth or income is at stake, each party will seek to use it to prevent any lowered standard of living after the divorce. If the couple lived together in or near poverty, their ongoing survival and that of their children will be the paramount financial issue. Financial knowledge is a product of the difficult task of developing a budget from the value, what they own less what they owe, of the marital estate.
In the midst of turmoil over who is entitled to child custody and whatever else, the parties may neglect to begin the basic budget task until the divorce proceedings are well underway. Actually, a budget should be one of the first issues the parties should discuss with their attorneys. Courts normally require disclosures from both parties of incomes, assets, and obligations for divorces to proceed at all. The budget process can calculate alimony and child and spousal support transfer payments and determine who, if either party, can maintain major assets, their residence as an example. Finally, a budgetary analysis may reveal an unsustainable financial condition in need of relief under provisions of bankruptcy law.
Preparation of at least two budgets is not unusual, the first to address what the parties need during the divorce proceedings, the second to draw a picture of anticipated party finances following the divorce. The first budget either raises or alleviates concern about current financial conditions. If one party will be in financial distress during the divorce, the budget will uncover the situation and provide for transfer payments for relief. If both parties will be in financial distress, protection from creditors may be available through bankruptcy proceedings.
When divorce divides one household into two, the ownership of all assets previously owned jointly by the married couple must be redetermined. There is no hard and fast formula for fair and reasonable distribution of assets in all cases; a voluntary settlement or a court order must determine which assets remain with each spouse after the divorce is final. All-out divorce litigation is one way; sensible negotiation is the other. Unlike some states, Connecticut law makes no provision for community property.
Contact the Law Offices of Piazza, Simmons & Grant, LLC for a consultation with an experienced Stamford divorce lawyer on marital property rights and related divorce issues. Call (203) 348-2465 today.