Calling a lawyer should be priority number one during the divorce process, but priority number two should be focused on your financial planning. Understanding the magnitude of sound financial planning during the divorce process will help with your new marital situation. You don’t want to deal with financial stress after court battles and conflicting settlements you and your previous spouse may have during a divorce. Divorce and the divorce process cause people to make irregular and illogical decisions more than we’d like to admit. If your line of focus is set on your current situation rather than a strategy for a better future, then you may lose a large portion of your money and mind in the process.
Creating a settlement with a lawyer and financial planner would be an excellent way to start a financial plan; it’s common for people to lose a large sum of money due to shared income, so planning for a smaller sum of money after a divorce wouldn’t be wrong. However, having a settlement can make room for negotiation and better outcomes for you and your ex-spouse. Therefore, it’s critical to meet with a family lawyer and financial adviser consistently through the divorce process to keep up and negotiate your settlement to ensure you get what you need to from the divorce.
The five biggest things to consider during the divorce process
Mediation and litigation Litigation is time-consuming, expensive, and annoying due to long trials with judges to determine who was “wrong” before and during the divorce process. Mediation is a more palatable alternative and avoids some of the more unpleasant parts of litigation. Mediation consists of a third party that will hear the issues you and your ex-spouse are bringing forward. A mediator will limit the dispute, try to resolve the conflict, and promote a productive discussion to resolve any problems you two may share. In addition, it’s less expensive than litigation and can limit some in-court divorce processes.
Invest in a long-term plan. Investing in a long-term plan means more than a two-year plan of action for financial stability. It’s about an extended plan of action, which may involve childcare, health care, living expenses for children if you have or plan on having some, and their needs and extracurriculars. Of course, getting the essentials for your kids is most important in the long run, so long-term alimony and child support should be at the top of your list of things to gain.
Understand the financial gain and loss of your assets The assets you hold dear might hurt your financial stance in the long hall. Retirement funds, bank accounts, land, and even your $10,000 fine china set are all worth something, but some assets are better left than taken. Having access to your savings account is better than the house you had your family in; Homeowners’ taxes can cause financial burdens you can afford in the long hall, so be confident with assets that will do you better in the next 20-25 years.
Divorce is synonymous with tax when financial planning. Divorce is costly. People can get frustrated, confused, and lose everything they own. So don't get the short end of the stick when you start financially planning out your new revenue stream and priority assets; you may bite off more than you can chew with the taxes you accrue. To ensure this doesn’t happen, make sure you split the assets evenly for fairness and as little tax as possible.
Keep your life and legacy up to date. Factor in your will when financially planning; after a divorce settlement has been reached, update your will, powers of attorney, life insurance, and inheritors. Realigning your assets during a divorce is a pain, but having it all go back to the state if something happens to you is worse. If you were out of the workforce for a few years, seek options to better your chance at employment. Some possibilities could be training or getting better educated, doing everything you need to get back on your feet as fast as possible.
An Albuquerque lawyer can help
Understanding the legal implications regarding financial planning and divorce will take more than quick searches and overviews. It’ll take more effort and time to consider what will be in your best interest, especially what you want from you and your ex-spouse’s past relationship. If you want a skilled advocate to accompany you with expert knowledge of financial planning and custody, our lawyers will provide the best service and know-how to accomplish what you need done. To learn more about how the professionals at Genus Law Group can help ease property division during divorce, please get in touch with uscontact us at (505) 317-4455 or chat with someone on our website chat function to schedule an initial consultation.