The Importance of Financial Planning During Divorce

 Posted on May 11,2021 in Divorce

Getting a divorce is a stressful process for most people. In many cases, it can be difficult for a person going through a divorce to look toward the future and preemptively plan for something like their finances. However, it is extremely important that you begin looking at your financial situation before or during the divorce process so you do not suffer unnecessarily after everything is said and done. Most people who go through a divorce experience some sort of change in their financial situation, especially when it comes to their income and financial goals. Making a solid financial plan before you are thrust into post-divorce life can be helpful and even crucial for success after divorce.

Assessing Your Financial Situation

In many marriages, only one of the spouses really knows the details of the family’s finances. This person is commonly referred to as the “in spouse” while the other spouse is referred to as the “out spouse.” The “in spouse” is typically the person who pays the bills each month, does the investing, and possibly consults with a financial planner. Because of this, the “in spouse” usually has a leg up in a divorce because they have a better understanding of the household finances. If you are the “out spouse,” the first thing you should do as you prepare for divorce is to assess the situation and attempt to gain an understanding of your finances.

Seeking Professional Help

In most cases, the best thing for the “out spouse” to do is to seek help from a professional who is familiar with financial planning. In a divorce, the best type of person to contact is usually a certified divorce financial analyst (CDFA). These professionals are highly trained and are certified to examine and analyze different financial aspects of divorce. Their job is to help you understand how the decisions you make about your finances can affect your future after the divorce. The CDFA will also help you understand any tax implications during the asset division process, determine whether or not you can afford to keep the family home, and explain how your retirement accounts may be affected.

Contact a Wheaton, IL Divorce Lawyer

Everyone talks about how important it is to take care of your emotional and mental health during a divorce, but taking care of your finances is just as important. At Goostree Law Group, our team of knowledgeable DuPage County divorce attorneys can help you determine your financial priorities in the divorce and form a plan to achieve them through the division of assets and other aspects of your divorce resolution. We can also recommend financial professionals who can help you plan for the future. To schedule a free consultation, contact our office today at 630-364-4046.

Sources:

https://www.forbes.com/sites/joeljohnson/2017/12/08/how-to-handle-financial-planning-during-a-divorce-4-steps-to-protect-yourself/?sh=638c17d1725f

https://institutedfa.com/what-cdfa-1/

https://mint.intuit.com/blog/personal-finance/divorce-preparation-personal-finances/