Tuesday, March 22, 2016, PM | Leave Comment
Divorce is a time of intense emotional turmoil for couples. While most people expect the psychological roller coaster that divorce brings, they are often caught off guard by the enormous financial changes that result from a divorce.
Some individuals never fully recover from the financial upheaval.
There are many reasons divorce can wreak havoc on your personal finances.
Transitions to New Financial Roles
In the aftermath of divorce, both spouses have to adjust to being solely responsible for all bills and living expenses. This change can be particularly traumatic for stay-at-home spouses who were not responsible for managing the household’s finances.
For these individuals, divorce is a crash course in personal finance. After years of relying on the bill-paying spouse to handle the mundane details of tasks such as budgeting, paying utility bills and filing taxes, having to learn how to manage these functions for the first time can be completely overwhelming.
Further, spouses who have not had to work outside of the home may be forced back into the workforce to make ends meet, but have few marketable skills.
Many such people are also woefully unprepared for retirement and find themselves having to scramble to secure their financial future.
An experienced divorce attorney, such as those at Blumenauer Hackworth, can advise a divorcing spouse about the inevitable financial changes after a divorce and take action in court proceedings to ease the transition.
Divorce can bring with it new expenses. Often, one spouse will have to budget for additional expenses resulting from the divorce, such as child support and alimony payments that eat up a significant percentage of take home pay.
Combined with the added expense of maintaining a separate household, such additional expenses may require a significant adjustment in lifestyle.
Divorce brings with it a lengthy and cumbersome, but essential, financial to-do list. Each spouse must make sure all joint bank and credit card accounts are closed and new accounts opened.
Further, the ex-spouse must be removed as a beneficiary on all insurance policies, will, trusts and other legal documents.
Completing these tasks are tedious even under the best of circumstances, but can be even more complicated when the divorce is contentious, as is frequently the case.
A good divorce attorney can help minimize the financial impact of a divorce. By working with an attorney, a person going through a divorce can get assistance in planning for the financial changes that come with divorce and take action to make sure that their interests are protected.Facebook.com/doable.finance