• 20
  • January
    2011

A failing marriage is a serious strain on the people involved. It takes a serious toll, both emotionally and psychologically. Finances may seem unimportant when a couple is experiencing a painful divide, but financial neglect will only result in more pain and difficulties down the road.

Financial experts urge people to follow some basic steps when they believe their marriage is heading towards a divorce:

  • Get a credit report - you need to get an idea of your outstanding debts, liabilities and credit. Sometimes a spouse is surprised when they are responsible for a particular debt (known as marital debt), because they didn't make payments on it during the marriage.
  • Write down your assets - you need to know all of your assets and their approximate value. While everyone remembers to include the home or cars, do not forget retirement accounts, pensions, stock or bonds. This gives an idea of what assets are at stake in a divorce. Professional assistance on valuation may be necessary.
  • Envision your post-divorce financial situation - your income and expenses will change - often times drastically - after a divorce. If you are nearing a settlement agreement or divorce decree, you need to determine what your new income and expenses will be. A new budget is a must.
  • Consider daycare expenses - when a marriage ends, a new need for childcare may arise for one or both of the parents. Daycare is expensive, the national average for fulltime day care costs are over $600/month for one child. Large cities like Houston typically have a much higher cost, sometimes reaching more than $1,000/month.

These steps are just a simple snapshot of financial considerations for divorcing couples. Each marriage has its own unique circumstances. A family law attorney experienced in divorce proceedings is knowledgeable on the process and potential pitfalls.

Source: Daily Finance