What Can I Do Before, During, And After Divorce to Ensure That I’m Financially Covered?
Concerns over potentially negative financial repercussions are one of the most common concerns when it comes to divorce. In fact, a number of people decide not to pursue divorce – even though they are unhappy – simply because they have these concerns.
However, according to a new study released by Fidelity Investments, most people completely recover–both financially and psychologically–within five years after divorce. Not only are there a number of preventative measures that you can take while married in order to ensure that you can easily recover–should divorce ever become an issue–but there are a number of steps you can take to take control of your money if you’ve already divorced, as we discuss below.
Stay Involved & In The Know
Perhaps most importantly, staying involved and aware when it comes to daily finances during your marriage is incredibly important. According to the study, 80 percent of those who did not regretted it later on and it took them much longer to recover afterwards.
This Includes Retirement Accounts
Failing to get involved in long term planning – especially when it comes to retirement assets – is another concern we frequently hear. Unfortunately, 40 percent of women surveyed in the study said that they were not involved in this type of planning.
Be Proactive
In order to ensure that you are protected in the future, as well as to simply have a more financially equitable marriage, make sure that you:
- Know the basics about your family finances, including but not limited to bank accounts, retirement accounts, property, and tax returns
- Talk about money: While it may be difficult, failing to do could spell disaster later on. According to the study, 14 percent reported finding out about unknown debt after their divorce and 10 percent found hidden assets. This was especially common for women who had been married for more than 20 years
- Know that a pre- or postnuptial agreement is a must, especially when it comes to safeguarding inheritance, a business, etc., in particular if there are concerns about commingled assets. Even sitting down to put together the pre- or postnuptial agreement with an attorney can be eye opening and informative in terms of how to keep certain assets separate during the marriage and keep yourself protected
Taking Control of Your Money After Divorce
Once you have taken stock of everything – new budgets, spending and savings habits, retirement, etc. – you may want to consider consulting a financial planner who can provide you with objective financial planning advice and ensure that you are making the most financially sound choices.
Contact Our Knowledgeable Florida Divorce Attorneys
The financial decisions that come with divorce can be difficult, especially if you have children and are concerned about protecting their futures. Having an experienced, supportive divorce lawyer by your side can make all the difference in helping you feel confident, informed, and ready to move on.
If you live in Florida, contact our Orlando divorce attorneys at the Arwani Law Firm, PLLC today to find out about what we accomplish for our clients.
Resources:
reuters.com/article/us-money-divorce-finances/your-money-avoid-divorce-money-regrets-by-taking-control-now-idUSKBN1ZD0EA
businessinsider.com/after-divorce-first-steps-financial-planner-advice
