WHAT FINANCIAL DECISIONS DO YOU NEED TO MAKE DURING YOUR DIVORCE PROCESS?

During the divorce process, a lot of financial questions will come to mind. While in the middle of the divorce, some couples will try to seek the fastest way out-just to end the stress and anxieties that occur during the divorce. This strategy may seem the best at the time. However, when the dust settles, financial decisions may have been made that turn out to be costly in time and money.

Make a list of your short-term and long-term financial goals. Think of unexpected events and costs that might occur during the divorce process. Determine alternatives to help solve these events and cost. Don’t trade away long term options for short term needs. You cut off future choices when this occurs. 

As an example, Susan wanted to keep the marital home. The home was 25 years old, had been the only home during the marriage and where she and her husband had raised their four children. Her decision was based more on an emotional basis because of the memories made in the marital home.  She also decided to review the cost of continuing to pay the mortgage, insurance, taxes and maintenance for the house. After this consideration, she realized that her future income would not allow her to afford the marital home. 

Keeping or selling the marital home is a common decision that has to be made in many divorce situations. Accepting property without consideration of future upkeep and maintenance costs can strap an individual with debt for years to come and destroy a comfortable lifestyle.

Many financial decisions have to be made during the divorce process. As an individual or couple considers divorce or goes through the process, it is critical to be informed of the marital assets and debts, understand the characteristics of those financial issues and make decisions based on information obtained. 

Decisions need to be made about the marital home, retirement, checking, savings and brokerage accounts, a secondary home, businesses, expensive collections plus many more assets as well as the division of marital debt.

Anytime that a divorcing individual feels rushed or pressured to make a financial decision, either from a legal date or the other spouse, step back and take a look at how various settlement options can affect the financial future.

At Financial Solutions for Divorce, we have been providing divorce financial analysis and strategies, mediation and expert witness services since 2007 to hundreds of divorcing individuals and couples.  Visit our website, www.divorcefinance.info, or call 502-855-3475, to learn about how Financial Solutions for Divorce can help you (or your clients) survive divorce financially.