Going through a divorce in Massachusetts can mean big financial changes for both spouses. This is the case because, in many cases, the couple goes from being a two-income household to a one-income household. For others, the changes brought on by divorce may mean a need to focus on spending and creating a budget for the first time.
In fact, some authorities suggest that when a Massachusetts couple decides to end their marriage in divorce, one of the first steps should be to complete a review of all accounts owned by the couple. Next, creating a budget may not only help in the divorce process, but may also reduce the chance that one or both of the spouses will over spend. Each of these financial planning steps can additionally make the negotiations for settlement easier in some cases due to the fact that both spouses are armed with information about the financial life of the former couple.
The financial planning that may benefit some who are considering ending their marriage also includes closing credit accounts that name both spouses. Opening individual credit card accounts can help spouses create or maintain important credit ratings. This type of planning can also help with the transition from married couple to single individual.
Going through a divorce in our state includes many negotiations, some of which can be stressful for many individuals. However, some authorities believe that the stress can be reduced, and negotiations can become easier when financial planning occurs prior to the divorce filing. Even if the planning did not occur prior to the divorce filing, it can be a benefit for some divorcing spouses to initiate financial planning during the process and beyond. When financial planning is added to the tools that couples utilize in divorce, the process can be made easier and more successful in preparing individuals for the long term.
Source: The Durango Herald, "Before divorce, prepare yourself financially," Hadley Malcolm, Sept. 14, 2012