Decisions made during divorce can have long-term repercussions on your finances, so it is important to take time to sort out your finances. It’s common for financial decisions to be made under duress, and the consequences of those choices don’t become apparent until months or years later.
Our Denver uncontested divorce mediators can help you navigate the complexities of these decisions and arrive at a beneficial solution for both you and the other party. After a divorce, a financial planner can assist you in making some of the most significant decisions in the following areas.
The marital home
Many people’s first instinct is to keep their house, especially if children are involved when divorcing. Even if you decide to keep your home, it may not always be in your best financial interests.
When negotiating the terms of a divorce settlement, it’s critical to account for a spouse’s pension as one of their most valuable assets. Pension is often difficult to navigate, so getting pension advice at a preliminary phase is essential.
Investments and savings
Savings and investments are treated similarly as pensions for divorce settlements. If you’re going through a divorce, you’re more likely to consider the investments and savings you’ve accrued during your marriage.
Many people don’t realize that their ex-husband or ex-wife may be entitled to some of the company’s profits if they get divorced. It’s not very common for a court to see the difference between business and personal assets unless there is proof in the form of a court order.
If there are children involved, it is necessary to consider the financial consequences of divorce in addition to the psychological impact on their lives. The impact on children is more than just a matter of deciding whether or not to remain in the marital residence.
Divorce usually results in a decrease in household income or, at the very least, a division of investable assets. With less money coming in, many newly divorced people find it difficult to adjust to their new financial situation. Suppose you want to maintain a healthy financial position and avoid serious debt. In that case, it’s critical to keep track of your monthly expenses, budget carefully, and save for the future.
After a divorce, you’ll likely need to restructure your finances better to reflect your new lifestyle and priorities. Understanding your needs and making informed decisions is the key to taking responsibility for your financial future post-divorce. Finding a team of experienced Denver uncontested divorce mediators will help you create a blueprint for your life after divorce.