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Financial planning and divorce

On Behalf of | Sep 28, 2015 | Divorce

Many Virginia couples see their marriages come to an end for a variety of reasons. Some people who divorce make the mistake of not planning for their finances after the process has ended. Doing so while the divorce is still pending can help avoid some major pitfalls after it is finalized.

For those who will likely be paying spousal support, it is important that they not only consider how the monthly amount will impact their budget, but they should also consider how they can continue making investments for retirement. Retirement planning can be an important part of post-divorce life, especially if people have retirement accounts that will be affected by the property division process. Taking steps to make sure they will be able to pay enough into their retirement accounts to catch them up can go long way for people being able to retire comfortably.

When budgeting for life after divorce, people need to think about whether they can afford their mortgage and utilities alone. If they will not be able to afford doing so, they may want to think about selling the home and moving into something more affordable. There are many other variables that also might come into play, and it’s important for people to think about their financial pictures as a whole to plan effectively.

Property division is often a contentious part of the divorce process. Understanding how such things as retirement and other accounts will be divided is important for negotiation. People whose marriages involve many different types of assets may want to seek help from a family law attorney. Legal counsel may help their clients think through how the divorce is likely to impact them. They may then use that information in negotiating a property settlement agreement that protects their clients’ interests.