Many couples might balk at the idea of drafting marital planning documents such as prenuptial or post nuptial agreements, but financial planning could be one of the main elements in securing an efficient, financially stable divorce.
No one gets married expecting to soon get divorced, but the reality is that many marriages end – – and for a multitude of reasons. There are some things you can do, though, to fully understand the financial impact a divorce can have on your future and make preparations that help you avoid devastation.
A recent Forbes piece notes numerous strategies that can be employed to reduce disputes, reduce costs and help divorcing couples avoid financial disaster.
- Understand your financial situation. By taking a careful inventory of your assets and liabilities, you can effectively negotiate your way through divorce mediation. From carefully examining bank statements, retirement statements and stock portfolios, you can gain a clear understanding of financial assets. Taken in conjunction with credit card statements, medical bills, car loans or mortgages you will have a more thorough picture of the assets and debts that need to be divided.
- Understand tax ramifications. As a clear example of “next level thinking,” you must realize that not all asset dollars are equal when it comes to taxes. Whether you are splitting assets with a high proportion of capital gains or assets with ordinary income taxes, this should be an important factor in negotiating the division of assets and debts.
- Understand your credit score. It’s something that most people should do on a regular basis anyway, but if you are considering divorce it is crucial that you run your credit report. Unexpected debts or liens can be serious stumbling blocks in any divorce negotiation.
Simple actions such as these can go a long way toward protecting your financial future through effective property division mediation. The article goes on to highlight other actions that can be taken to improve your financial stability following a divorce.
- Update your beneficiaries – as soon as possible your beneficiaries (life insurance, retirement accounts, and estate planning documents) should be updated to reflect your new status.
- Learn to complete routine transactions – often, one spouse is in charge of paying the bills during a marriage. Take the time to figure out how this is most efficiently handled. From direct, paperless billing to making one annual payment, you have numerous options. Find the right one for your new lifestyle.
Depending on numerous factors, a divorce can quickly become complex and frustrating. With a skilled family law attorney fighting by your side, you can proceed through the legal process smoothly.