Financial Planning During Divorce
Divorce can be complicated because of the emotional and financial repercussions. While it is important to be concerned about your emotional sanity during this rough period, it is equally important to pay attention to the financial aspects. Financial planning during and after divorce can help you secure your financial future and avoid the common pitfalls.
Divorce and Financial Planning
Many people become so consumed in sorting their emotional troubles that they forget to take care of the financial aspects. It is important to remember that planning your finances is crucial during this time.
Your circumstances are bound to change after divorce. Therefore, it is important that you keep the changed set of circumstances in mind when you are in the process of planning your future expenses, investments or savings.
Many people have the requisite financial knowledge to plan for their post-divorce finances themselves. However, not everyone has the required financial acumen. In addition, most people are so emotionally distraught during this time that they can hardly put their thoughts together. Therefore, financial planning can be a tough challenge during divorce.
When people are unable to plan for their financial future post divorce themselves, they tend to seek help from professional divorce financial planners.
Divorce financial planners can help people understand the complex financial matters that usually require attention during and after divorce. Through the detailed analysis, people are able to understand their financial situation in a much better manner
Is Divorce Financial Planning Helpful?
Divorce financial planning helps to highlight the future reality. It is common for people to live under a false impression that things will work out ultimately. However, truth is that if you can not totally plan for your financial future, things might go completely haywire.
You need to take care of yourself emotionally post divorce and the last thing you would want is to be a financial mess because that would only make things worse. Planning for your financial future post divorce will help you understand the legal matters associated with finances as well.
Important Issues in Divorce Financial Planning
- Child Support
If you have children, you need to pay special attention to divorce financial planning because your mistake can affect your child’s future. Therefore, you will need to ensure that your children are financially protected even after divorce.
You and your spouse need to talk about child support payments, which of you will pay them and approximately how much child support payment you will need based on your requirements.
In addition, you will need to discuss your child’s health insurance. Children’s educational needs deserve special attention and consideration, especially if the school or college fee is very high.
Issues related to your marital home will need to be sorted. You and your partner will need to discuss whether you plan to sell or keep the house. If you decide to sell, make sure that you get your fair share. However, if you plan to keep the house, make sure that you and your spouse decide on an arrangement about mortgage payments.
Many couples tend to share the mortgage expenses after divorce. However, you need to act according to your own set of financial circumstances.
You need to be aware of the current pension arrangements of your spouse. It is common for people to conceal this information so that they are better off during the financial settlement.
While some couples opt for periodic maintenance payments, there are others who opt for a clean break. You and your divorce financial planner need to discuss this closely to understand what would be the best arrangement for you.
The Final Word
The above tips will help you plan the important aspects of your finances post divorce. If you and your spouse are unable to reach an agreement about these financial issues, seek advice from a competent divorce mediator.
Try to seek as many sources of information to gain different perspectives about your financial concerns. The more you know, the less worried you will feel and the more likely you will be to feel financially secure in future.