When a marriage ends, it can be both emotionally and financially crippling. It may be so painful that one cannot think clearly about making critical financial decisions. Dividing household contents, the marital home, bank accounts and vehicles, can take a toll on all parties involved. In California, proper planning can help safeguard assets during a divorce to secure financial well-being.
For many years, high rates of divorce have been reported, but in reality, numbers peaked highest in the 1970s and the 1980s. Rates have been declining ever since, and if the trend continues, two-thirds of marriages will never include a divorce. This is awesome news for proponents of marriage, but there are still many families affected by divorce.
Often, divorce can be contentious and force people to make rushed decisions regarding money. Enlisting the help of a financial planner early on can reduce the stress of trying to understand shared financial accounts. Experts suggest maintaining co-ownership of properties until they can be sold and stress that cash is a valuable asset to cover unplanned expenses. With the uncertainty of what lifestyle changes may occur, it is important to maintain financial flexibility for the first year.
Divorce is often a disconcerting time for all parties involved. Being armed with the right financial tools can help ease the stressors during this time. In California, it may be in one’s best interest to seek guidance from an experienced divorce attorney. A lawyer with a sound history can use experience and guidance to work toward a more positive outcome.
Source: forbes.com, “How To Handle Financial Planning During A Divorce: 4 Steps To Protect Yourself“, Joel Johnson, Dec. 8, 2017
