A broken marriage is an emotionally challenging experience with far-reaching consequences, including financial issues. Studies indicate that divorcing couples spend at least $7000 on legal fees and other charges. In the aftermath of a broken marriage, you must navigate the complex world of personal finances. It’s essential to know some of the possible money problems that could arise beforehand to enable you to prepare adequately. This article sheds light on some common financial issues after a broken marriage and how to solve them.
- Financial independence
In some marriages, one party is the only breadwinner of the family. Therefore, the unemployed partner often becomes financially strained or burdened when a divorce happens. The problem with transitioning from a joint financial system to individual financial independence can be too much of a headache to endure alone. For example, previously shared income and expenses must be recalibrated to fit individual budgets. When this happens, your legal or financial advisor may recommend creating new financial plans and setting realistic goals.
A personal budget is also required when your legal representatives reevaluate investments and insurance policies. That is when you must develop a solid understanding of personal finances to ensure absolute comprehension of each stage of the process. The knowledge you acquire can help you regain control over your financial well-being. Hopefully, you will consult a financial planner to provide valuable insights as you transition into financial independence.
- Division of assets and liabilities
This issue is a complex aspect of a divorce, and it’s advisable to know more about it. It is the equitable division of assets and liabilities accumulated during your marriage. In a divorce, assessing and dividing your joint bank accounts, investments, properties, and debts becomes necessary. However, couples’ main issue is determining a fair distribution of marital property.
It can be contentious, often requiring the best divorce mediation attorneys for amicable settlements. Considering the tax implications of dividing assets is equally important, as certain transfers may trigger taxable events. Due to the technicalities involved, engaging in open communication with your ex-spouse is essential as you work towards a fair and amicable resolution. This conversation stage must be devoid of malice and requires high emotional intelligence, so keep this in mind.
- Alimony and child support
Alimony or spousal and child support are key areas of a divorce financial settlement. The purpose of these payments is to support the lower-earning spouse and ensure the children’s welfare, if any. Unfortunately, the problem is negotiating the appropriate amount of alimony or child support, leading to never-ending disputes and legal battles. Before taking any step, however, it is essential to understand the laws governing child and spousal support in your state. Knowing the law and its intricate workings can be all you need to achieve fairness.
Whatever is arrived at must be sustainable and justified. Communicating transparently with your now ex-spouse may be necessary to prioritize fair interests, especially when young children are involved, so feel free to consider this.
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