Understanding Financial Fears In Divorce

Divorce is one of the most traumatic experiences to occur in a person’s life. The uncertainty that comes along with a marital dissolution can shake even the strongest person’s confidence.

One of the main concerns of any person going through #divorce is finances. This is especially true for the non-financial spouse – the spouse who traditionally took a “hands off” approach to managing the couple’s assets during the marriage.

Whether a couple has $10,000 or $10 million in the marital estate, there are usually two main concerns:

1.    Fear of not getting a fair share. In most marriages, one spouse usually assumes control over the acquisition and management of assets. This is a natural occurrence, because one spouse usually has more interest in finances than the other. Unfortunately, when a couple splits up, this may leave the non-financial spouse in the dark as to what the couple owns. This can create problems, especially if one spouse is suspected of concealing assets. In extreme cases, a divorce attorney may bring in a forensic accountant to help uncover undisclosed assets and determine the worth of hard-to-value assets like privately held businesses, etc.

2.    Fear of the financial future. A non-financial spouse has legitimate concerns over what their financial situation will look like, both during and after the divorce. While the court will issue temporary orders for financial support while the divorce pends, the lion’s share of the non-financial spouse’s long-term financial stability rests upon the type of assets they receive once the divorce is concluded. Thoroughly understanding the pros and cons of each marital asset is critical to ensure the non-financial spouse. It is also important to understand how to manage any assets received in the divorce. For the non-financial spouse, relying on trusted advisors to help create a long-term plan for these assets is the most efficient way to alleviate these fears.

While divorce can be scary and full of unknowns, building a team of trusted advisors early on – including a Divorce Transitional Support Advisor – is the first step towards easing your mind and paving the way for long-term financial success.

*****

Going through a divorce can lead to financial uncertainty and concern. Visit our website to learn how a Divorce Transitional Support Advisor can help you or your client regain financial stability after a divorce.