Massachusetts individuals who worry over how ending their marriages may adversely affect their financial situation are not alone. Divorce does typically have a significant impact on finances. The good news is that, with proper preparation, there are ways individuals can prepare – before, during and after the divorce – for a more stable future, both emotionally and financially.
An experienced divorce attorney may be able to give a reasonably accurate estimate of what assets a person may end up with after property division. This, in turn, allows that individual to create a budget based on these assets, expenses and income sources. This will give one some idea of how best to negotiate an equitable settlement agreement. Things like retirement, college tuition for children, health care and more will all be affected, so it can be important to understand how IRAs, pensions and other benefits will be modified by divorce.
Even for divorced parents entitled to child support, an emergency fund is often advisable. Only approximately 50 percent of child support payments are actually paid, and among those, the payments still may not be the full amount. While an unfortunate reality, lapses in payment are possible, even likely, and it helps to be prepared. Divorced parents with minor children have other additional considerations as well, such as life insurance to protect the family and estate planning to ensure that children are cared for properly. Establishing a trust may be something to contemplate and discuss with a legal professional.
It can be crucial for divorcing individuals to understand their financial situation and begin planning before trying to negotiate their divorce settlement. Having a financial plan in place for the future helps minimize the likelihood of mistakes that could prove costly. An experienced Massachusetts family law attorney will have the legal knowledge and expertise to help guide divorcing individuals toward a more stable future.
Source: mvtimes.com, “Finance 101: Divorce?“, John Kageleiry, Aug. 21, 2017