Colorado couples considering a divorce may want to get their financial ducks in a row before taking steps to end their marriage. Divorces can stress couples not only emotionally but also financially. Working with a financial planner may help lessen the stress of transitioning from married to single life.
One of the biggest issues may be lowered available income, as spouses go from living on two incomes to just their own. Divorcing spouses need to thoroughly examine their finances, from weekly salary, jointly held assets, and bank accounts to bills, income taxes, and insurance policies. They need to account for every penny to be sure they won't come up short upon their return to single life. This is especially important when one spouse has considerably more assets than the other.
Joint bank and credit card accounts need to be canceled, with each spouse setting up individual accounts. Divorcing couples can use this comprehensive financial information to set up new budgets for their post-divorce life. Each spouse also should consider setting money aside before and during the divorce process to tide them over while they are adjusting to living on a lower income. The best time to go over finances is before or during the divorce because it might be too late afterward.
With half of all marriages today ending in divorce, it's important that each spouse looks after themselves and any children they may get custody of. A divorce attorney may be able to assist with this as an advocate for a spouse's best interest. The attorney may be able to advise a spouse on financial matters or work cooperatively with a financial advisor to ensure the best outcome for the client.
Source: Wall St. Cheat Sheet, "7 Ways to Manage Your Finances Through a Divorce", Kirsten Klahn, June 08, 2014
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