Are you and your spouse thinking about a divorce? You aren’t alone. Instances of divorce tend to be higher in the new year as many people make, or plan to make, big decisions that tend to be life-altering. A main concern that many people in Massachusetts may have when divorcing, and rightly so, is how a split will affect their finances.
It is possible to be financially successful during and after your divorce. While changing finances from ‘we’ to ‘me,’ spouses should first assess the current state of their financial affairs. If you look over statements, tax returns and other financial documents you can get a full accounting of both yours and your spouse’s assets and liabilities. Some may be shared marital property and others may belong to each spouse individually.
Understanding that the asset division process can drastically change the snapshot of your finances is key to success. It is a good idea to think about adjusting your financial lifestyle to prepare for the changes that lie ahead. Curbing spending and continuing to save toward retirement are important financial steps. These choices can lay the groundwork for a successful financial outlook in the years immediately following a divorce.
The change in financial situation may seem overwhelming, at first glance. You may have particular concerns about a specific assets and how they will be allocated. It is a good idea to make a list of your must-have assets and ones that you could potentially part with.. The property division process is intended to be a fair and equitable division for both parties.
Source: Forbes.com, “How to Succeed Financially During and After a Divorce,” Mark Avallone, Jan. 27, 2017