Divorce brings stressful and challenging times in the lives of two people. The legal separation is not only emotionally exhausting but also financially draining. People often feel overwhelmed while going through a divorce. Some may even hire a lawyer for divorce to get through devastating times. However, with several legal ramifications, mental stress, and emotional imbalance, you may forget to take necessary steps related to your financial well-being.
Your financial advisors can indeed help you during such time by providing legal advice, but they will not understand what you are going through. You need to consider several vital factors around finance during a divorce to avoid going through more emotional turbulence.
In this article, you will understand a few critical financial concerns that every individual going through a divorce must consider.
Create an Advisory Team
Divorce can change your life both emotionally and financially. During such stressful times, you may not understand how to deal with the legal requirements, handle finances, or even do taxes. Avoid taking the burden alone and hire experts.
Create an advisory team involving experts in different industries such as banking, insurance, law, taxes, wealth management, mortgages, and budgeting to eliminate errors and implement the actual goal, i.e., getting a divorce. Besides, these experts will help you build a sustainable financial plan for yourself.
Navigating a divorce can exhaust you emotionally and financially. With countless legal requirements and paperwork, you may end up feeling overwhelmed. Some may even forget to document everything during divorce, which can bring dire times. Therefore, always maintain a clear understanding between you and your partner. Be considerate and honest about your words to avoid misunderstanding.
Be Informed About Life Insurance
The spouse responsible for paying alimony and child support has to provide life insurance to the other spouse. The purpose of providing life insurance is to get replacement alimony and child support if the paying spouse dies suddenly. You can always check with your divorce attorney regarding your life insurance claim.
Consider Your Tax Status
Several states have a 90-day waiting period to get a divorce, which can frustrate those wanting a quick end. If you and your partner are still legally married as of December 31st of the year of the waiting period, you both still have to file joint taxes. One of you needs to find a new tax practitioner to avoid incompatible situations.
Update Your Estate Plan
During your divorce process, always make sure to update your estate plan, i.e., will and beneficiary. People often forget to change their insurance, retirement policy, and will after getting a divorce.
Such irresponsibility can cause a massive problem in your estate plan and cost you a fortune. Hiring a divorce lawyer will help you understand more about updating your estate plan more accurately and on time.
Consider Selling the Marital Home
Although your marital home may hold some emotional and nostalgic memories, it can quickly become a financial burden. The cost of living without proper income can make it difficult to live under the roof. Therefore, you may want to consider selling your marital home after divorce.
By considering these six critical financial concerns, you can rest assured about living independently and stress-free.
Need to sell your home because of divorce? Give St. Louis Realty Advisors a call at 314-270-1601 today to learn more.