Financial Steps To Take During Divorce With Renée Bauer, #212
In episode #211, we talked about the information you need to gather to prepare to file for divorce and the initial proceedings. But what financial steps do you need to take during a divorce? How do you figure out what life will look like on the other side? How does splitting your assets actually work? Renée C. Bauer—an experienced family law attorney and mediator—joins me in this conversation to help flesh out the details.
Renée has been practicing law since 2003. She’s also the author of two books, “Divorce in Connecticut,” and “She Who Wins” and the host of the “Happy Even After” podcast.
You will want to hear this episode if you are interested in...
[2:16] You’ve filed for divorce—now what?
[5:28] Creatively diving into each person’s goals
[10:41] Handling the sale of a house you co-own
[12:52] How to separate a co-owned business
[15:54] The Fair and Equitable Division of Assets
[17:41] What happens if no agreement is reached?
[20:27] Where retirement assets land in the process
[23:24] Why a 50/50 split is the starting point
[27:47] Unraveling emotional attachments
[30:00] Taking control of your finances
You’ve filed for divorce—now what?
Before you can talk about settlements, go to court, or negotiate anything, your lawyers need to know what you have. They’ll look at returns, bank statements, credit card statements, crypto statements, and much, much more to start the formal process.
If someone is a W-2 wage-earner, it’s easy to track their finances. But if someone is self-employed, lawyers may have to ask for corporate tax returns, bank records, etc., or bring in a forensic accountant to look at actual earnings.
Creatively diving into each person’s goals
Renee points out that if you’ve hired a good lawyer, they’ll work with you to determine your goals. Let’s say you really want to keep the family house. Your lawyer should help you determine if that’s a smart decision. Is it because of an emotional attachment? Or is it because interest rates are too high to buy another house?
They’ll look at settlement options that align with each person’s goals. If they care about you and your goals, they’ll focus on creative solutions instead of splitting assets down the middle.
When it comes to the home, the parties are often forced to sell because they can’t reach an agreement. But if the parties determine they’re keeping the house until the kids are out of high school, they determine the value of the house at that point and time and how equity will be split once the house is sold. That’s the number they’ll get regardless of the value of the house seven years down the road.
Listen to hear how “The Fair and Equitable Division of Assets” comes into play with a judge's ruling, and how other assets such as businesses and retirement accounts might be split.
What happens if no agreement is reached?
The court schedules a pretrial hearing during which the lawyers sit down with the judge. The judge looks at the financials and what each person wants and will give their recommendation. Most cases settle at this point. But if the two parties can’t reach an agreement, trial dates are scheduled. Then the decision-making is left up to the judge.
Trials are often focused on trying to prove that the other person is at fault. However, the judge decides whether fault is an issue and if it impacts the financial situation and division of assets. Their goal is to make sure each party has equal footing at the end of the divorce.
Resources Mentioned
Subscribe to the Retire with Ryan YouTube Channel
Episode #211: Financial Steps to Take Before Divorce
The Happy Even After” podcast
Connect with Renée on Instagram