Financial Planning in Your Divorce Can Mitigate Against Extreme Financial Loss

 Posted on December 12, 2017 in Division of Property in Illinois

No one can dispute the emotional nature of a divorce but it is crucial that parties do not allow their emotions to overshadow the financial aspects of their case. Otherwise, they may run the risk of extreme financial loss. Learn more about how you can mitigate this issue with careful financial planning and the assistance of an attorney.

Star Planning Sooner, Rather Than Later

While it is possible to handle divorce matters over a short time-period, those who plan early tend to have better outcomes because they are more prepared for the process. Some manage to save money. Others seek help from a financial advisor to obtain advice on where and how to spend or invest their settlement or to gain a better understanding of their own finances and how to manage them. Regardless of how you prepare, do it sooner, rather than later.

Avoid Making Hasty Decisions

It can be easy to say “yes” to everything your spouse wants – especially if the request is within reason and agreeing makes the process easier. Sadly, though, doing this can place you at a serious risk for extreme financial loss once the divorce is over. Consider the following example: During negotiations, your spouse offers up the house in exchange for the full amount of their 401K. Because you wanted the house from the beginning, this seems like a reasonable offer, so you accept. Then, once the divorce is over, you realize that you do not have the resources to cover the expenses (i.e. mortgage, insurance, repairs, maintenance, etc.). You are now left with few options – and it is unlikely that any of them will work out in your favor.

Keep Emotions Out of the Equation

It is not easy to separate the emotional and financial aspects of a divorce, but doing so can be crucial to the outcome of your case. That is because emotions may cloud your judgment or cause you to act irrationally. It can also give your spouse ammunition in the divorce, which may be dangerous if you are divorcing an abusive, narcissistic, or otherwise manipulative individual. So, do yourself a favor: seek support from family, friends, and therapeutic resources to keep yourself more emotionally grounded during divorce negotiations.

Contact Our Joliet Divorce Lawyers

If you are planning on filing for divorce, contact Tedone & Morton, P.C. for assistance. Our seasoned Joliet divorce lawyers can protect your rights and assist you in successfully navigating through the divorce process. At every turn, we protect your rights and best interests. Call 815-666-1285 to schedule your personalized, no-obligation consultation today.

Source:

https://www.forbes.com/sites/joeljohnson/2017/12/08/how-to-handle-financial-planning-during-a-divorce-4-steps-to-protect-yourself/2/#31bfd0843fee