5 tips for financial success during and after a divorce
When couples enter into a marriage, they never expect their loving relationship will end in divorce. While the overall divorce rate has dropped over the past few years, it’s growing exponentially for spouses over the age of 50.
Divorce can be an overwhelmingly emotional process for couples, especially when children are involved. But the end of a marriage can also have devastating financial effects for one or both spouses if they are unprepared.
Steps for a healthier financial future
When you decide that there is no other option than to end your marriage, there are things you can do to protect your economic well-being, including:
- Inventory assets and debts: Make a comprehensive list of all your marital and non-marital property as well as what you owe and have documentation to back it up.
- Consider tax impacts: When splitting assets, know whether your share is subject to taxes, such as capital gains or ordinary income taxes.
- Do a credit check: Order a credit report to avoid any surprises on what you owe. You can be held accountable for debts accrued by your ex-spouse if you are named as a co-creditor.
- Protect child support and alimony: Work to ensure that alimony and child support payments will continue in the event that your ex-spouse becomes disabled or dies.
- Update beneficiaries: Once your financial settlement is complete, designate new primary and contingency beneficiaries on insurance policies and retirement accounts and review any estate planning documents.
Seek knowledgeable and compassionate legal advice
Divorce can be a contentious process, and legal costs will generally be much higher when couples take their fight to court. Those who work together through mediation or collaborative divorce can reduce those costs helping you start your next chapter on a better financial footing. An experienced family law attorney in Arizona can help you focus on the legal matters instead of the emotional issues and work diligently for the best outcome for you and your family.