Divorce often feels like an emotional roller coaster. However, it’s financial issues that can determine how comfortably you and your children live post-divorce. That’s why it’s essential to think logically about the financial aspects of a break-up and to hire professionals who will focus on the financial issues when you can’t.
Experts in divorce financial planning say that divorcing couples make a number of mistakes that can cost one or both of them significantly. One is failing to work out differences via a collaborative divorce or mediation. If the two of you can work out a fair child custody agreement and financial settlement, it will save you time, stress and legal fees.
By bringing in a tax accountant or divorce financial planner, you avoid unnecessary taxes. It’s best if you can work together with your representatives to avoid unnecessary taxes and audits when you begin filing taxes as single people. It’s essential to look at the after-tax value of your assets.
Your financial planner should be involved in reviewing the settlement and help you determine a workable budget for you and your children to ensure that the settlement will cover your financial needs. He or she can calculate the impact of inflation over the long term and help you develop a post-divorce financial plan.
Divorce usually represents a big change to both spouses’ financial picture. That’s why it’s essential that, in addition to having experienced legal guidance, you also have an experienced financial professional in your corner.
Some people get caught off-guard when a spouse suddenly wants to end the marriage. Aside from the emotional devastation, this can leave them in a lurch financially. Financial experts recommend that if you suspect that your spouse is planning to file for a divorce, you take action to protect yourself. This includes getting copies of all of your financial records. Further, you should keep an eye on all of your joint accounts to make sure that they are not being drained. You may find it best to consult with a divorce attorney at this point to get advice on what actions to take.
Wherever you are in the process of ending your marriage, an experienced Louisiana family law attorney can help ensure that you get the legal support you need and find the financial guidance that is crucial for your future.
Source: Association of Divorce Financial Planners, “Fifteen Critical Financial Mistakes in Divorce” Lee Slater, MBA, CFP, CDFA, Dec. 17, 2014