Planning for the Financial Future Following Divorce
On behalf of The Law Offices of Cindy D. Sackrin posted in Divorce on Thursday, February 9, 2017.
Planning for divorce is not a process many couples envision but it is important to be financially prepared for divorce. It is important to determine what type of divorce process is best for the couple and the circumstances. Options can include traditional divorce litigation, collaborative law divorce, mediation and negotiations to arrive at a settlement. Having the proper guidance will help to determine what process is best for the situation and help the couple navigate the process.
To begin with during the divorce process, it is important to take a thorough inventory of the couple's assets and liabilities and gather relevant documents. Documents related to assets and liabilities; income and expenses; as well as investments, retirement accounts and real estate documents are all essential to pull together as part of the divorce process. Understanding the financial situation of the couple can help them better prioritize their needs throughout the divorce process which can help negotiations proceed more smoothly to a more positive settlement outcome. It is also useful to consider the tax consequences of property division and the proposed divorce settlement.
In addition, whenever there has been a major life change, such as a divorce, it is a good time to update beneficiary designations in estate planning documents, on insurance policies, retirement accounts and on other relevant documents and accounts. It can also be useful to keep in mind that insurance policies can help protect child support and alimony obligations. Couples should keep in mind that they may also need to adjust their budget to their new lifestyle following divorce.
Overall, tips to keep focused on the divorce process and being in a healthy financial position for the future following it can be helpful to keep in mind. The family law process provides resources to help couples resolve their concerns and move in a positive direction following their divorce.
Source: Forbes, "How To Succeed Financially During And After A Divorce," Mark Avallone, Jan. 27, 2017