Divorce, even under the best of circumstances, is a life-changing event that can have a drastic impact on your finances if you aren’t careful. One financial analyst provides some suggestions for mitigating the financial impact of a divorce.
First, get a good financial advisor to help you protect your assets and ensure that you have enough money to take care of yourself and your children. Depending on your situation, his or her advice may be different than that provided here. However, these are certainly things to consider and talk over with your financial advisor.
If divorce is imminent, open some bank accounts and credit card accounts in your name alone. It’s easier to do while you have a higher household income. Having accounts in your own name can help protect your credit rating.
If you don’t already, it’s best to have a job when you divorce. If you’ve been staying home taking care of your children, it’s helpful to at least have marketable job skills if you need to support yourself and your children post-divorce. As one family law attorney notes, “[M)oney is power and the power dynamic in divorces where one person is financially dependent on the other is dramatically different from those where both spouses have the ability to pay the rent.”
Review your estate plan and revise all wills, powers of attorney and trusts to reflect your new status. Your legal and financial advisors can help you determine the best time to do this during the divorce process.
The legal and court costs of a divorce can be minimized if the couple can handle most of their issues amicably. That doesn’t mean that you need to give in to your spouse’s demands if they aren’t in the best interests of your children or yourself. However, it’s important to choose your battles and focus on what’s best in the long-term.
An experienced Louisiana family law attorney can work to help you get your fair share of the assets. It’s best to focus on what’s best in the long-term rather than the short-term.
Source: The Tennessean, “7 ways to mitigate the financial fallout from divorce” Phoebe Venable, Nov. 07, 2014