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5 critical financial components during a divorce

On Behalf of | Jan 15, 2020 | Family Law |

Going through a divorce can be a stressful and anxious experience, but it’s also a time when people must be focused on financial matters that will largely determine how they start the next phase of their lives.

If you and your soon-to-be-ex-spouse are also parents, it’s essential that you put the needs of your children first. Working with an experienced family law attorney will help you focus not only on your kids but help you land on solid footing when your divorce is final.

Factors vital to your financial well-being

There are many elements to consider when going through a divorce that can have positive or negative implications for your future, including:

  • Be financially aware: Inventory all your personal and marital assets, income earned by you and your spouse as well as retirement and investment funds and understand how new tax laws will impact child support and alimony payments.
  • Let go of emotional baggage: Focus on getting your fair share of assets, such as property, stocks and other tangible items that provide an economic benefit. Don’t spend your time and energy fighting over emotional assets, which may only give you a temporary feeling of satisfaction.
  • Proceed cautiously: Don’t make hasty decisions regarding closing or opening accounts or settling ongoing support payments. Work with your attorney to decide what decisions need to be made as well as when and don’t rush decisions that can wait until later.
  • Stay the course on investments: Many people believe they must immediately liquidate investment or retirement assets to survive on a more limited income. However, staying calm and level-headed during the process can help protect those assets, which will be crucial later in life.
  • Create a post-divorce budget: Most people going through a divorce understand that both parties will have to reduce their lifestyle costs. Understanding what you’ll have for income helps you determine whether you’ll be able to maintain more expensive items, such as the family home.

Remember, divorce is a temporary process

Ending a marriage can be a devastating time for families. However, it will pass, so proceed thoughtfully and carefully. Consult your attorney before making any changes to avoid costly mistakes that can cause headaches down the road, while putting yourself in the best position possible for a brighter future.