Finances And Divorce

No one plans on it at the time they get married, but many may have to deal with divorce and the financial impact it will have on them. Sadly, this is a common reality for many people, and both men and women will be faced with living on one salary instead of two and dividing assets that can leave them struggling financially.

Although divorces can be contentious, in many cases both spouses may want to split on good terms, but finances can open the door for unexpected problems as the more unpleasant details of the breakup have to be decided. Therefore, no matter what, both parties should have a lawyer to work these out and avoid any possible nastiness. And of course the laws that may ultimately decide the division of finances are complicated and difficult to understand for most people.

Many couples also have joint savings and retirement or brokerage accounts. At the onset of the breakup the holders of these accounts have to be notified that a separation has occurred and that any transaction has to be verified by notifying both parties before any changes are made. This is another job for the lawyers. They will also be able to equitably decide what portions of a spouse’s retirement the other is entitled to based on the years of marriage which now may apply to both the husband and the wife. And again, the council of an attorney can outline the options that may include a one-time payment, monthly payments at retirement, or a lump-sum payment that you transfer directly into your own IRA, where your money will continue to grow until retirement.