When a married couple splits, the separation may be the start of a long and complex split of a business partnership that has legal and financial implications. Many experts agree that a divorce is not just an emotional split but it is also a financial one.
One challenge during divorce is controlling emotions and the trauma from taking over and affecting finances. Often, those who go through divorce have to put off financial concerns because they are unwilling to face their finances. Those who wish to survive both the emotional and financial turmoil brought on by the pain of divorce should follow three key financial guidelines on how to regain their financial footing.
Experts warn divorced or divorcing people to pay attention to their credit, have scores checked and re-establish their banking. Even before the decrees are officially signed and issued, credit cards and savings and checking accounts should all be transferred to one person. Joint accounts should be closed. Those that cannot be closed or modified easily should be examined by a legal professional and a petition should be issued to ensure that the finances do not continue to be tied together.
A second key piece of financial advice is understanding spending habits and keeping to a budget. As divorces can get expensive and suffer some financial losses in legal fees, having a solid budget plan can help a lot in controlling expenses and can prove to be an indispensable negotiating tool when trying to reach a settlement. Learning to budget can also be beneficial in future financial management of a person's own finances.
Finally, divorces can get overwhelming and the help of an experienced professional or financial advisor can provide guidance and support that helps, especially when it comes to confidently making informed decisions on financial matters. A legal professional and a financial advisor can provide much-needed help with strategies and other financial tools necessary to ensure a healthy financial standing.
Divorces can be very difficult, both emotionally and financially. Having a knowledgeable and sympathetic legal professional on the person's side is necessary in sorting out the complexities of a legal divorce issue. On the financial side, the legal professional's and the financial planner's experiences can prove helpful in providing sound financial advice and necessary tools during these difficult times.
Source: mainstreet.com, "Divorce and Finances: Gaining Financial Control," Michelle Zudeck, May 7, 2013