Every couple may face money issues and decisions at one time or another. When that couple is planning to divorce, those money issues and decisions need to be front and center. Pennsylvania couples may want to contemplate the following matters and how divorce will affect finances overall, so as to be better prepared for life after the split.
The first thing experts recommend is that each party do a credit check. If left unchecked, shared debts can stay the responsibility of each party and adversely affect one person compared to another. Another vital step is to evaluate life insurance plans. In fact, all insurance policies should be re-evaluated to reflect the split.
Retirement accounts, such as 401(k) plans, may be worth a great amount to each party, and plans may hinge on the status of those plans. This can play a role in how a divorce is negotiated. Expert advice may be needed to avoid losing pension funds or as a means of avoiding being shut out of deserved funds. The house may be a source of financial contention. While keeping the house may seem like a financial win over the other party, the actual financial reality of keeping the house may mean it isn’t an asset worth fighting over.
Each Pennsylvania couple may have a different plan for life after divorce. However, financial missteps can make those plans moot or impossible to fulfill. Expert guidance and a working knowledge of what the financial outlook may actually be after a divorce can help each party move forward with a sense of satisfaction.
Source: indystar.com, “Pete the Planner: Good financial decisions vital in divorce“, Peter Dunn, Jan. 25, 2015