${site.data.firmName}${SEMFirmNameAlt} ${site.data.firmName}${SEMFirmNameAlt}

Should married couples plan for the possibility of divorce?

A newly wedded couple is too focused on building their lives to consider the prospect of a marriage ending. They look for a place to live and plan for a family. In addition to those steps, sound financial planning can prepare couples for a future, regardless of their marital status.

Proactive steps include:

  • Know your possessions and balance sheet. Secure copies of real estate documents and bank, brokerage and retirement statements that verify assets, liabilities, income and expenses. The information can help negotiate a fair settlement in divorce mediation.
  • Understand the tax consequences of dividing assets. Simply stated, not all dollars are equal. Assets can carry a higher proportion of taxable gains or run-of-the mill income taxes. Others are tax-free. A financial advisor can be a vital resource.
  • Monitor your credit score. Free credit reports have never been more available. Before starting a new life, you need to identify debts incurred and liens filed while married. Also, remember that a soon-to-be ex-spouse can damage not only their credit, but also yours.
  • Beneficiaries should match your new marital status. Reviewing estate plans is only the first step. Take a long look at retirement plans, insurance policies and other accounts that are beneficiary and contingent beneficiary-directed.
  • Ensure that money needed for child support and alimony continues should your ex-spouse die or become disabled. If you are not a beneficiary on an existing policy for the duration of agreements, you can request new coverage.
  • A new chapter in your life may require a new lifestyle. Divorce divides one household into two. That division includes income and investable assets. Adjusting to a lower cash flow is difficult, but manageable. Know your cash flow, understand routine transactions, budget your expenses, commit to long-term retirement savings, and manage credit card debts.

Ending a marriage may bring uncertainty. However, financial security can make an unclear, post-divorce future more clear.

No Comments

Leave a comment
Comment Information

How Can I Help?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Confidence | Compassion | Conviction