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Financial considerations during and after a divorce

There are many different matters it can be very important for a person to pay very close attention to when it comes to a divorce. One are financial matters. This is because a divorce can have some profound impacts on a person's financial situation.

During the course of a divorce, there are all sorts of different financial questions that may need to be resolved, such as:

  • Who will be given what in the division of marital assets?
  • How will debt obligations the couple incurred during the marriage be split?
  • Who will be responsible for paying child support? 
  • If there will be child support payments made, how much will the payments be?
  • Will there be any alimony?

How important financial questions like these are resolved in a divorce can have some very significant long-term financial impacts on both of the divorcing parties. Thus, it can be very important for a divorcing individual to take their long-term financial goals into account when developing their strategies and approaches for dealing with the various financial issues in their divorce. Attorneys can help divorcing individuals determine what strategies and approaches, given their particular situation, make the most sense when it comes to the different financial issues that are present in their divorce.

There are also some important financial things to keep in mind after a divorce. One is that a divorce may make it so some of a person's financial documents (such as their estate planning documents) might need to be updated to reflect the person's new situation and that there are some new things the person may need to take into account when performing certain financial tasks (like filing for taxes). Thus, among the finance-related things it can be important for a person to do after a divorce are:

  • Review their beneficiary designations on things like their retirement plan. 
  • Review their estate planning documents.
  • Make sure to have a firm grasp of what the tax consequences of the various aspects of their divorce financial settlement are.

Source: The Huffington Post, "Divorce and Money," Terry Savage, March 18, 2015

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