A divorce can be an emotionally charged time for everyone in the family. However, it is important to put emotions to the side when it comes to financial planning during and after the divorce. Texas couples who are transitioning from marriage to single status should think about how this event will change their retirement and estate planning as well as their personal and business cash flow.
When a couple decides to go their separate ways, it may be necessary to change the designated beneficiary of any joint or individual retirement plan was started during the marriage. In some cases, one party may be required to transfer a portion of that retirement account to their former spouse as part of the divorce settlement. Meeting with an attorney may be a good idea for those who have assets that may not be passed down as planned unless changes are made to any will that may be in place.
After a divorce, it is important to understand that an individual’s cash flow and credit situation may change. Therefore, it may be worthwhile to meet with a financial planner to figure out how to best adjust spending habits to account for a possible lack of credit or disposable income after the divorce is finalized.
A divorce can be a complicated event that may involve many moving parts. While it is understandable that emotion may play a role when negotiating a divorce settlement, talking to an attorney may help take some of the emotion out of the process. This may help ensure that an individual negotiates a settlement that helps to secure his or her financial future as best as possible.
Dentistry IQ, “Important considerations for the couple going through a divorce: Part 2“, Theodore C. Schumann, May 18, 2014