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Financial preparations for a divorce

| Jul 3, 2018 | Contested And Uncontested Divorce |

Some future exes in Georgia may have concerns about how getting a divorce will impact their finances. However, there are some proactive actions they can take to mitigate any financial complications that may arise.

A spouse going through a divorce should confront the reality that their income and expenses will likely change for the worse. However, they can use a budget worksheet to get a clearer picture of their new monthly expenses, such as insurance premiums, utilities, housing, food and transportation.

Having a clear picture of debts is also important. Individuals can be held financially liable for any debts that are owed on joint accounts that developed during the marriage, even if it was the other spouse who incurred the debt. Retrieving credit scores and reports from the three primary credit agencies can help one find potentially hidden liabilities.

Other financial aspects, including retirement funds, savings for education, cash flow and insurance needs, will also have to be reassessed. The same scrutiny should be applied to investment portfolios as well.

Another action that some people may overlook is updating beneficiary designations. For one who still has their spouse assigned as the executor of their estate or as their main beneficiary, it’s important to update the will as soon as possible. The beneficiary designations for annuities, retirement accounts and life insurance policies should be reviewed and updated as well.

A divorce attorney may evaluate a client’s circumstances and advise certain legal strategies for obtaining desired settlement terms. As a last resort, litigation can be used to protect the interests and rights of the client.