Handling a Divorce Financially

Approximately four out of ten U.S. marriages today end in a divorce. Going through a divorce is never easy since it is associated with intense emotional and financial turmoil. themoneytimes explores how financial planning for divorce can assist a woman in going through this phase of her life.

Although the true cost of a divorce is its impact on the family, one cannot ignore its financial ramifications. Under such circumstances, when a woman is expected to handle her finances and cater for the long term financial security of her children and herself, it could be an exceptionally taxing experience.

At this stage, knowledge of your rights and obligations, and how to ensure a financially secure future, can only aid in mitigating the pain associated with this otherwise emotionally draining experience.

Consulting an Attorney or Not

If the divorcing couple is unable to reach an amicable agreement, they would indisputable need to get in touch with a third party, but this person need not always be an attorney. You could consider mediation or arbitration also, both of which happen to be less expensive than using an attorney to settle your differences, and don't necessitate court appearances.

Role of a Certified Divorce Financial Planner

Every divorce entails planning for the future financial security of not just the spouses but the children as well, for a divorce can bring about a significant change in the standard of living of each individual of the family. It is here that the role of a divorce financial planner as a valuable resource for settling financial issues associated with a divorce comes into picture.

Since there is a multitude of complex fiscal aspects associated with the legal dissolution of a marriage. By making use of a certified divorce planner both the spouses can ensure that they have a clearer view of their financial futures and can hence proceed for a financial settlement which is more just and equitable.

It is important to note that the services of a divorce attorney are seldom enough to address the fiscal angle of divorces, simply because an attorney is bound to have sufficient knowledge of law but not that of finance.

Doing your Homework Well

Don’t ever get emotionally carried away. Before approaching an arbitrator, mediator, or attorney, you should have done some homework yourself. To begin with, prepare a list of your marital assets. These assets might include the following:

• House
• Cars
• Retirement plans
• Cash value life insurance policies
• Stocks, bonds, mutual funds
• Stock options
• Tax refunds
• Accumulated vacation pay
• Frequent flier miles
• Loans to others
• Artwork or antiques
• Collectibles, tools

Also try to anticipate how much child support will be needed for your children’s food, housing, day care, clothes, school supplies and activities etc. It could be a good idea to get written confirmation from your spouse's employer of your spouse's salary, vacation balance, bonuses, and stock options.

Safeguard Yourself against Financial Harm

Husbands are any day financially more educated then their wives. So, when a divorce becomes evident, start the process of educating yourself about tax returns and investments, debts, and family income. This can help you guard yourself against any financial harm or injustice.

Women often don’t get what they deserve because they are anxious to get over with the divorce procedure, only to realize later that they have been denied what rightfully belongs to them. A few tips that can help you safeguard yourself against financial harm are:

• Cancel any joint bank accounts and open individual accounts
• Close all unused credit accounts, and notify your creditors of your change in marital status.
• Cancel all credit cards and get new ones in your own name
• Change names on house deeds, stocks and bonds, and car titles, as necessary
• Change beneficiaries on investments, retirement plans, life insurance policies, and savings accounts
• Update your will
• Check your credit report to make sure your spouse hasn't incurred debts in your name

Alimony

A woman earning less than her husband can claim for Alimony or spousal support. It ensures that the woman gets money from her husband to meet her living expenses. Money provided as alimony is over and above the money provided by way of child support.

There are several factors a judge considers while deciding whether or not to grant alimony. Although these differ from state to state, they usually involve factors such as:

• The parties' relative ability to earn money, both now and in the future
• Their respective age and health
• The length of the marriage
• The kind of property involved
• The conduct of the parties

In most cases, a judge will award alimony only where one spouse has been economically dependent on the other for a major duration of marriage.

The legal procedures involved in a divorce are complicated enough to send you up the wall and then there are your emotions playing a havoc. Under such circumstances, it would be of great help if the two of you can settle all issues affably. But if not, brace yourself to wage a war for what rightfully belongs to you.