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Divorce is a time of financial changes

On Behalf of | Dec 18, 2019 | Uncategorized |

People in California may face challenging financial times when they decide to divorce. Indeed, the financial changes that accompany the end of a marriage can be more profound and long-lasting than many of the legal and emotional effects. In addition to dealing with the complications of property division, people may also need to plan to handle their finances differently after the divorce is finalized. Professional assistance from a certified financial planner may help people to structure their new financial lives after their marriage comes to an end.

When planning for the property division process during a divorce, it is important for both spouses to fully understand marital finances. Otherwise, they cannot advocate effectively for a fair distribution of marital assets. Sometimes, one partner knows much more about the finances than the other, especially if that person handles the bills, investments and other financial matters. When it is time for divorce, each party should seek to understand family funds, however. They can get bank account statements that show how much money is in their accounts. This includes not just checking and savings accounts but also investment accounts and retirement funds. Annual tax returns can also be an important guide to understanding family income, including dividends and business income.

In most cases, it is more expensive to pay for two households with the same amount of money than it was to pay for one. Both spouses may need to change their financial approaches after a divorce, becoming more frugal and dedicating more money to their retirement accounts. Making a plan can help people adjust to these changes.

There are many major financial difficulties that can come with divorce, even for couples with extensive assets. A family law attorney may help a divorcing spouse to advocate for a fair distribution of assets during the property division process.