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How to mitigate the financial consequences of divorce

On Behalf of | Jun 2, 2020 | Divorce, Estate Planning

California estranged couples may experience negative financial and emotional consequences regardless of when they end their marriages. However, it may be more difficult to overcome the consequences of a divorce that occurs closer to retirement age. Therefore, it is important for individuals to create plans that make it easier to meet their needs both now and into the future. Individuals should be prepared to alter their lifestyle after their marriages end, and in some cases, it may be necessary to push back their projected retirement date.

This may be especially true for those who are providing financial support for an adult child or grandchild. Ideally, a person will create an emergency savings fund that can last for up to 12 months. This may be worthwhile even for those who don’t think that their lifestyles will change much after their marriages come to an end.

Before filing for divorce, people should create a list of all known joint assets and debts. It is also a good idea to review recent tax returns or other documents to determine if there are any items that a spouse has tried to keep hidden. Filing for separation or divorce generally prohibits the other spouse from liquidating an account or transferring money from one account to another.

Anyone who is going through a divorce may experience a variety of negative emotions such as fear, anxiety or resentment. An attorney may be able to help a person remain focused on the facts of the case in an effort to obtain a favorable settlement. Those who are overwhelmed by their emotions may also want to resolve a divorce through mediation. Doing so may allow individuals to articulate their feelings while also ensuring that a case is resolved in a timely manner.