Navigating the divorce process can be overwhelming. For one, there are a huge number of things to monitor during this time: Children. Living arrangements. Finances. In fact, during divorce, many people seek out advice on how to best manage financial affairs. To help you better prepare to face the uncertain financial future that lies ahead, the following are some helpful strategies for financial management during the divorce process.
Take Emotions Out of Asset Ownership
It is common for people undergoing a divorce to become emotional about certain assets. These emotions can cloud a person’s thinking and end up jeopardizing the outcome of the divorce settlement. It is a much better strategy to focus on making choices that are best for you and your future. Just because you cannot imagine giving up your marital home does not mean that you should attempt to own and maintain it on your single salary.
Do Not Rush Into Major Financial Decisions
As you begin the divorce process, it is easy to become excited and rush into performing actions like closing financial accounts. Before you make any financial decisions, wait to speak with your divorce attorney. These choices can end up having a substantial impact on your finances after your divorce is finalized.
Prioritize Your Children’s Needs
If you have children, it is a good idea to plan ahead for all costs that might be part of their future. Estimating these costs can help you avoid various disputes later on. In some cases, financial planning for your children can even help you stay out of court.
Plan for What Lies Ahead
Many divorces cause both spouses to reduce their daily living costs. As a result, even if a court awards you ownership of the family house, you might not have the assets available to pay for the property.
Realize the Value of Life Insurance
During the most argumentative divorces, it is common to just want things to be over. In some situations, this leads people to allow former spouses to remain the beneficiaries of life insurance policies. Allowing this designation, however, can result in various undesirable consequences.
Speak with Your Lawyer Before Making Financial Changes
You should always speak with your divorce attorney before making any alterations to your financial status. Among other reasons, there are certain actions that are classified as legal during a divorce and which can lead to countless complications. If you are worried that a former spouse might make impermissible financial changes during the divorce process, you should also discuss this with your divorce attorney.
Remember Retirement Accounts
Even though the divorce process is overwhelming, you should not forget about retirement accounts. These accounts can be divided among divorcing couples. After retirement accounts are divided, however, they cannot go back to how they previously were. This makes it critical to speak with a knowledgeable financial planner before assets are divided in such a manner.
Contact a Skilled Georgia Divorce Lawyer
Divorce is understandably a frightening time, but remember that you are not alone. If you need the assistance of a skilled divorce attorney during this difficult time, do not hesitate to contact Vayman & Teitelbaum, P.C. today.