Financial considerations to keep in mind when divorcing
Posted by Thomas Pettinicchi of D'Amico & Pettinicchi, LLC on Oct 08, 2014 in Divorce Mediation
When in a difficult situation, for many people there is a natural inclination to do whatever is necessary to get out of it as quickly as possible. While in some instances this is a good approach, in others it is better to take one’s time. Divorce may one of those occasions, particularly if you have not been involved in financial matters in the course of your marriage. While either spouse could find themselves in this situation, often it is women who find themselves in this role.
In most cases many things change following a divorce. The financial situation of each spouse is one of those things. Because of this it is important that one takes steps in the divorce process to make sure that he or she begins this next chapter in the best possible position. The first step is to determine all assets, where they are located and who is named as the beneficiary.
It is also a good idea to:
- Determine what your budget will be following the divorce.
- Look up your credit rating.
- Save money for a divorce lawyer.
In the course of working out a settlement, it is important to dive below the surface. While certain assets may at first seem appealing, in the long run, expenses such as taxes, monthly payments and funds needed for upkeep, can actually make an asset a burden.
Another matter that should be addressed is retirement. Keeping retirement in mind while dividing assets can result in getting assets that if necessary could be transferred into a retirement account.
The process of divorcing can be expensive. That is one of multiple reasons why a divorcing couple might decide to go with mediation. If children are involved this method could also be beneficial to their ongoing relationship as well.
Whatever your interests or desired approach, since the average person divorcing is not well versed in the process it is often good to work with a divorce lawyer.
Source: ABC News, “In Divorce Negotiations, Keep Your Eye on the Long Run" Laura Mattia, Sept. 22, 2014