According to recent statistics, nearly half of all marriages in California and across the United States will end in divorce. Without question, getting through a marital breakup is one of life’s most difficult challenges. Understandably, it can also be a significant financial challenge. Here are a few financial steps to take for those thinking about divorce.
Organization is important during all aspects of life, but during divorce, staying organized is crucial for finances. One of the first things to do is to make a list of all financial accounts for both spouses. Also, make copies of tax returns and all applicable account statements. Separating from a spouse may also mean going from two incomes down to one. So now is usually not a good time to make big financial commitments that take two incomes, such as buying a house.
It is always recommended to take into account how much the divorce will actually cost. Try to determine if an uncontested or collaborative divorce is an option. However, even in an amicable divorce, the process will probably cost more than anticipated. Keep in mind that there may be uncontrollable factors like delays in court proceedings or a confrontational spouse pursuing litigation.
In some instances, spouses who are going through divorce may reach an agreement on how to split finances and reach a settlement without further court intrusion. Unfortunately, informal negotiation is not always an option and a trial may be unavoidable. Those in California who have questions about divorce could benefit by seeking the services of an experienced litigator. A knowledgeable family law attorney can help an individual obtain the most financially favorable outcome relative to his or her situation.