In the throes of a nasty divorce, financial planning may take a backseat to your emotional turmoil. Whether these melancholic moments arise due to distraught little ones, relentless custody battles, or the psychological highs and lows of single life, a sturdy support network is the foundation of any successful divorce. That’s why it’s essential to have a team of attorneys on your side.
Attorneys specializing in family law will look out for your best financial interests. For example, wh Law, a North Little Rock law firm, will make sure that you walk away from the marriage with your rights (and your savings account) intact.
While stepping onto the frontlines of a contentious custody battle may sound like a prime opportunity to reduce costs, hiring a family law expert can dodge divorce-related disasters that could cost you a fortune. With this in mind, consider an attorney or law firm’s objectivity and expertise to be an investment that’s capable of saving you money in the long run.
A disintegrated marriage may seem like a small price to pay for emotional well-being. However, you’ll want to remain alert and stand guard over your financial security. Otherwise, you may fall victim to an unfair alimony order.
6 ways failed marriages can affect financial security:
Not thinking about these areas when getting a divorce can cost you both financially. Remain alert and avoid letting these slip-ups slide off your radar.
Childcare
If one of the parties in a divorce has been a stay-at-home parent, childcare should be factored into the equation. Will children go to daycare instead of being at home? How will the stay-at-home parent transition back into the workforce?
If a working parent shares custody, childcare services and on-call babysitters are easy remedies for a time-crunched, single parent.
Debts
Depending on where you live, you may be held responsible for debts that aren’t even in your name. A spouse could rack up thousands of dollars in student loans and credit card charges during the marriage in their name only, but in a divorce, that debt might be split 50-50 between both spouses.
Property
Often, couples will fight over who gets to keep the house. Estates are big and beautiful, but they come with hefty mortgages and high property tax bills, too. With these risks in mind, verify that keeping the house makes financial sense.
When it comes to property and households, ensure you both can afford to live on your own. If your household income barely supported one home before the divorce, you’ll both need to make lifestyle changes post-divorce to afford two separate households.
Retirement accounts
Sometimes, one spouse can save more than the other toward retirement if the other half of the couple shoulders more monthly expenses.
A family law expert can look into how retirement accounts can be equitably divided.
Credit scores
Your credit score won’t be affected if you file for divorce, but your score will drop if your finances are in shambles following the divorce proceedings. Ensure you’re paying bills on time and that you and your former spouse agree on the division of financial responsibilities.
Taxes
Don’t liquidate your investment accounts, 401(k)s, and other assets to pay divorce-related bills without factoring in tax penalties. You’ll also need to consider which spouse can claim your children as dependents.
Taxes can be an awful surprise or a future battleground unless you consider them during divorce negotiations.
Hire an expert
Couples can work together to decrease their tax-related expenses while ensuring both parties leave the custody battle unscathed and in better financial shape than before. Remember, hiring a family law firm can empower both spouses to move forward financially after a split, so don’t cut corners when cutting ties with your former spouse.
