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Planning budget and addressing finances important during divorce

On Behalf of | Apr 4, 2014 | Firm News

On the surface, some people who have never gone through a divorce may believe that determining how property should be divided is a simple process of trading forks for spoons. But, the overall process may have a more complex structure, especially in a high-asset divorce. Many Dallas area companies may offer their workers deferred compensation programs, or access to perks that go beyond a 401(k) or other type of retirement program.

Assessing the overall picture of what assets may fall into the marital estate is an important process when a person has decided to file for divorce. Even if a separation is amicable, issues can arise as two estranged spouses seek to divide assets.

Commentators say that keeping in focus on the issues that need to be resolved can be beneficial in the long run. Spouses who lose focus may tend to fall into a pattern of fighting over the kitchen flatware, costing more than a replacement set may cost and delaying the conclusion of the divorce.

Divorce lawyers know that the process is emotional — again, even in an amicable divorce. When a couple’s marital asset structure is complex, a divorce lawyer and other professionals may help to keep a person in focus. For instance when a closely-held business is involved, a forensic accountant may be beneficial in determining the value of the business.

In the meantime, it is important for a person seeking a divorce to assess personal finances. Reviewing life insurance policies for who is named as a beneficiary is only one step that a person may want to take.

With all of the assets and debts compiled for the purposes of determining a fair property settlement, a person is in a good position to evaluate future finances. After the divorce is finalized, what was once a two-person household will be a one-person situation (provided there are no kids involved in the divorce). Commentators say that knowing early on how the budget will work post divorce can be beneficial in the long run.

Source: ABC News, “How to Protect Your Finances in a Divorce,” AJ Smith- Credit.com, March 31, 2014

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