Of all the things that people think about before proceeding with a divorce case, financial concerns often have a way of causing the most anxiety, leading to uncertainty. How will assets be divided? What will your living situation look like during and after a divorce? How will your retirement plans be impacted? Your estate plan? These financial concerns are not minimal, and it is important to give them due consideration.
Making a plan
As a recent news article noted that having a financial plan for your divorce—and for post-divorce life—is crucial. Besides issues involving minor children, financial issues are usually the heart of a divorce case. Some divorcing couples are lucky enough to be civil and can negotiate a settlement that can be easily ratified by the divorce court—but many are not so lucky. Divorce cases can become quite heated and difficult due, in many cases, to the emotional elements that are also part of ending a marriage.
The recent news article pointed to a few tips for a financial plan during a divorce, such as making note of the potential tax implications of certain assets that might be subject to division between the soon-to-be ex-spouses. The article also noted that it is crucial to consider the liquidity of certain assets and how soon you might need ready cash after a divorce is finalized.
When thinking of a financial plan, think of what you want your life to look like after the divorce is finalized. Will you have time to sit on current investments? Will you need or want to sell your family home? Will you have any large expenses? These questions, among many others, will likely need to be part of the financial planning process as you approach a divorce case.