Handling financial difficulties can be stressful under the best circumstances, but many people who are navigating the divorce process discover that it makes matters much more complicated. While there might be some issues that you anticipate encountering following a divorce, there are others that come unexpectedly. While the assistance of a seasoned divorce attorney can help you prepare for the numerous financial complications following divorce, the following will go over what the most common issues are so that you can anticipate them as soon as the divorce process begins.
Adjustments to Your Insurance Policy
Insurance companies often provide discounts to families who decide to insure several items together. Following a divorce, however, you will likely not be required to insure the same objects together any longer. Many recently divorced people discover that their insurance premiums increase following the end of a marriage. While some newly divorced couples are able to obtain a less expensive and more suitable policy with their existing insurance company, other people find that it is a better idea to switch insurance companies to obtain a less expensive premium.
Changes to Retirement Plans
When it comes to estate planning, many people rely on their spouse’s company-provided retirement plan. All of this, however, can change following a divorce. Even if you end up with a portion of your spouse’s retirement plans, it will still be critical to find a new retirement savings plan. While some people are able to pursue similar savings plans from their own employer, other individuals solve this problem with other types of financial methods including placing additional amounts in an IRA account.
Following a divorce, a recently divorced person is accountable for paying his or her own taxes. Due to numerous factors including changes in income and a new filing status, many recent divorcees discover a substantial change in their taxes. Add to this that there are many new and complicated tax laws that have significantly changed the landscape of divorce, and it can be challenging to correctly anticipate how your taxes will change. Fortunately, a knowledgeable family law attorney can often help prepare you for this process.
Changes to Estate Plans
In addition to the costs associated with a divorce, many people find that they are also needed to revise existing estate plans or other critical documents following a divorce. These documents can include wills, healthcare powers of attorney, financial powers of attorney, and many other types of estate planning documents.
Speak with an Experienced Family Law Attorney Today
Divorce is a complicated and challenging time. While it can be startling just how much of your financial landscape changes after filing for divorce, it is important to go into the process knowing as much as you can about what will likely happen. One of the largest unanticipated difficulties that many recently divorced individuals face is financial strife. To take control of your situation, obtain the assistance of an experienced divorce lawyer. Contact Vayman & Teitelbaum P.C. today to schedule an initial free case evaluation.