When you enter into a marriage with another partner you are merging two economic entities into one. The financial implications involved in getting a divorce can have lifelong impacts on you and your children. Sometimes the best thing to do is seek professional help by hiring a financial advisor. Financial advisors will help you and your spouse to come to an agreement and reach a settlement that is mutually beneficial.
The cost of divorce can be only a couple hundred dollars to as much as several thousand dollars and last over a period of up to two years. There are many short-term financial burdens involved with a divorce. You are now faced with the new fees including paying your spouse’s rental or mortgage, alimony, and child support. Keep in mind you will be paying attorney and court fees. A financial advisor can help you get through the hard times ahead.
When meeting with a financial advisor you will need to go over your long and short term financial goals. Your advisor will be able to explain how your settlement may affect your current and future financial situation.
By getting a divorce you are risking your financial future. When meeting with an advisor, you will evaluate the potential risks. Such risks include your spouse defaulting on a loan, filing for bankruptcy, becoming disabled, or even dying.
Before meeting with a financial advisor, it is important to discuss with your spouse how you will handle the situation. When attending your first session be sure to have all necessary legal documents. Such documents include your birth certificate, marriage license, any real estate records, and income tax returns from the past four years, insurance documents, financial records, and any official documents relating to your children. As a safeguard be sure to bring a list of assets that belong to you. It is always better to provide your advisor with more information rather than less.
Although hiring a financial advisor may impose additional fees, this expense may save you a lot of money and time in the long run. Dealing with your finances during a divorce can be a job in itself.
Jacqueline Thornhill offers securities, investment advice and financial planning services through Waddell & Reed, Inc. Waddell & Reed and Jacqueline Thornhill do not provide legal or tax advice.
