What You Should Know About Your Finances and Divorce
There are many avenues in which you can take to reach a final divorce agreement, but not all of them have to completely wreck your finances and drag your family through a brutal court case.
A collaborative dissolution is the best way to minimize collateral damage on both sides. It deals with the family as a whole, helping to improve the lines of communication, co-parenting and the division of assets, debts and incomes.
Here are some financial suggestions we like to share with our clients as they progress thru the collaborative divorce process:
- Early on, work to close joint accounts and open a new one for yourself
- Delay making a big purchase until after the divorce has been finalized
- Have a firm understanding of your assets, incomes, monthly expenses and loans
- Draft out a pre-divorce and post-divorce financial plan
- Include retirement and emergency funding
- Take a realistic inventory of your finances – create a budget
- This will help you see the financial goals you need to negotiate in the final agreement
- Determine how alimony and/or child support payments will change your financial landscape
- Discuss how your taxes will be impacted
Divorces are not pleasant to experience, but there is hope, especially when you work with a neutral financial mediator and other experts who can help you and your spouse decide the best course of action to dissolve the marriage that is agreeable to both of you.
When you utilize the experts in the Los Angeles Collaborative Family Law Association, you can reduce your anxiety and stress because you will know that when your divorce is finalized, each party involved, including your children, will be ready to face the future with confidence.
Call us today to learn more about how our members at the Los Angeles Collaborative Family Law Association can help you and your family through the divorce process.
President, LACFLA
Note: This information is general in nature and should not be construed as legal/financial/tax/or medical advice. You should work with your attorney, financial, medical or tax professional to determine what will work best for your situation.