Understanding your family's finances in the event of a divorce

Thinking, talking and addressing divorce with your spouse at a time when you are happily married can feel uncomfortable and lead to an awkward conversation. But considering that many marriages in Orange County ultimately end in divorce, having these conversations can be important.

If you do not have a prenuptial agreement, this discussion may be especially important. Postnuptial agreements are always an option, but if even if you do not go that route, there are a few things you should be aware of, especially if you do not handle your family's finances.

If you are not involved in your family's finances, get involved. It is important to know your spouse's earnings and income, as they are important factors when determining child support and alimony awards. You may be able to tactfully do this during the tax-filing season, when each spouse's income is reported to the Internal Revenue Service.

In addition, you should be aware of your family's household expenses. In addition to taxes, mortgages and the list of bills you receive each month, understand how much is spent on food and leisure activities as well. Again, these are important to know and understand in the event of a divorce when child support and alimony are determined. Understanding how much money is coming in and how much is being spent will also allow you and your spouse to create budgets for each of you to avoid overspending.

Trust is essential in any healthy marriage. Maintaining an openness when it comes to your family's finances will not only put your mind at ease, but may save you from potential divorce legal issues down the road if the marriage breaks down.

Source: The Huffington Post, "The Happily Married Spouse's Guide to Divorce: Ten Tips for the Blissful but Prudent," Stephen P. McSweeney and Tara Jones Willecke, Nov. 13, 2015