When people divorce, it is important for them to consider all of the different ways their finances may be impacted so they can take proactive steps to prevent problems. Even when a divorce is an amicable one, these financial considerations are important when people work to come to an agreement.
Financial changes are part and parcel of divorces. People may find themselves facing increased costs due to the fact that such things as housing and utilities will no longer be divided. Some people may also be expecting to pay spousal or child support, and that should also be taken into account when planning the post-divorce budget.
One matter that is commonly overlooked by those who are going through a divorce is their ability to retire in the future. People may want to hold off on taking their property division share of their spouse’s retirement plan, instead rolling it over so they do not have to pay taxes on it. They also sometimes forget to change beneficiaries on their life insurance and retirement account policies, which is an important thing to do in order to ensure that those accounts and proceeds pass to their intended beneficiary.
A high-asset divorce may involve very complex financial decisions and issues. People who are going through such a proceeding may benefit from seeking help from both a financial adviser as well as a family law attorney. Doing so may help them take advantage of tax requirements through their property settlements. They may also be better able to determine how they will set aside money and save towards their own individual retirements. An attorney may help people to also include Social Security planning as part of their overall discussion.