Managing the emotional and financial implications of a divorce can be difficult for anyone. When you’re an expat, the situation can become even more difficult. We’ve put together some helpful financial tips to make managing divorce and finances as an expat more simple.
Seek legal advice
If you’re going through a divorce, it’s first important to obtain legal advice from an attorney who is aware of the divorce laws in the country in which you live. This will guarantee you’ll be treated fairly and receive an appropriate settlement. The situation can become more complex if you and your spouse live in different countries. In this case, you will need to ensure you understand the legal requirements in both locations.
Evaluate your plans
If your residency status depends on your relationship, divorce may mean you’re no longer permitted to live in the country, and may need to obtain a new visa if you want to stay. It’s crucial you consider your plans early, and enlist the help of an immigration lawyer who will inform you of your rights and responsibilities. While most countries offer a grace period allowing expats to apply for a new visa or to prepare to return home, you still need to be aware of what’s required where you live.
Obtain financial advice
Relationship changes or breakdowns can mean changes to our life and financial plans. A financial adviser can explain your changing financial position and work with you to develop strategies to help keep your finances secure. As your settlement may include division of assets, it’s important you’re aware of how possible decisions or outcomes might impact your finances and life plans, and seeking financial tips and advice before this time can help you navigate the settlement process more easily.
Sort out any travel plans
After a divorce, it’s important you consider your living plans. If your residency is dependent on your relationship, it might not be possible for you to stay in the country. An immigration lawyer can help you understand your particular requirements and to process any visa applications. Knowing when and whether you want to travel home can help you make plans as early as possible.
Avoid exchanging currency
It’s not always possible to avoid a currency exchange, but we definitely recommend it. Your lawyer and financial adviser can help you understand how currency fluctuations could influence your arrangements and what you need to do to achieve the fairest outcome.
Know your tax implications
Complexities arise when there are two jurisdictions for expats to consider. You’ll need to understand taxes on sales or transfers of assets overseas before you reach a settlement. Legal professionals aware of regulations in both jurisdictions can offer the advice and support you need.
That’s where Expat Taxes comes in. We have years of experience providing specialty tax services to Australian expats, wherever they are in the world. Our professionalism and expertise ensures you’ll reach the best outcome – and as we’re all expats ourselves, you’ll feel confident we’ll appreciate the challenges and complexities of navigating expat life and finances. Get in touch today.
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