January is known as the month in which there is a significant rise in the number of people seeking to dissolve a marriage. It has been nicknamed “divorce month” as a result of the jump in divorce filings during the first month of the year. While there many theories and explanations as to why there is such an increase, anyone seeking to divorce in Pennsylvania — now or as the year progresses — may benefit from a few valuable financial tips.
First, take stock of the reality of the cost of a divorce. It costs money and being prepared for the cost is advised. For those who are budget conscious, there are cost-effective options, such as mediation, to help keep the bottom line manageable.
Also, think about finances beyond the initial separation. It is important to determine a realistic number for basic living expenses after a divorce and what will be needed to live a certain type of lifestyle. Factoring in stocks and bonds, if applicable, may be a good idea. Long term financial accounts, such as retirement accounts, are best left untouched if possible. Any marital debts also need to be resolved.
The financial impact of a divorce at any of time of year should be well thought-out. The actual impact can vary greatly from family to family as each situation is unique. Pennsylvania couples may find it helpful to have all financial information out on the table and open for negotiation as the divorce proceeds in order to ensure proper planning and adjustments can be made in seeking to achieve an fair and comprehensive settlement.
Source: New York Post, “January is the biggest month for divorces“, Gregory Bresiger, Jan. 11, 2015