If you’re getting a divorce, you need to think more than just about the emotional stress that comes with splitting up. As marriage dissolution is likely to affect your future, you also need to think about the way you handle your finances. Divorce, especially later in life, can present financial challenges and affect your ability to save and retire with ease.
Divorce lawyers in Boulder, CO share a few things that can help:
Evaluate Your Finances
It pays to have a working knowledge not just of your own properties, but also marital assets. These include life insurances, pensions, stock options, retirement investments, and others. Note that most of these things have value and should not be ignored when negotiating a divorce settlement.
If you want financial security after divorce, you should also develop a realistic monthly budget, while taking into account inflation and your future living expenses. You shouldn’t overlook the fact that you may not be able to maintain your current quality of life after divorce.
Prioritize Your Needs
One important consideration after divorce is where you will live. If you and your partner own a house together, it’s best to decide who will keep it. If you intend to keep the house, determine if you can handle all the associated costs with your income. These include the monthly mortgage payments and maintenance costs.
If you want to move to a new place, for instance, you need to decide whether renting or buying is right for you. If you’re paying alimony or child support, this can affect your credit and your eligibility to qualify for a mortgage.
Consider Your Retirement
If you’re qualified to receive a portion your partner’s contribution to a retirement plan, you will need the help of an attorney to create a Qualified Domestic Relations Order (QDRO). This is to help divide the funds and avoid losing your pension rights.
You might also want to consider your long-term financial security by hiring a financial planner. At times like this, you shouldn’t only focus on splitting assets and getting spousal support. It’s important to understand how things might look after a couple of years.
Divorce can negatively affect your finances and standard of living in the future. It pays to be prepared to avoid financial problems later on. Don’t forget to work with an experienced attorney to help guide your decisions and protect your rights.