Financial Considerations for Individuals Prepping for Divorce 

Going through divorce can be a difficult and emotional process, yet partners must discuss many items before one can be finalized. For example, couples need to determine how they will split marital property, whether or not to keep the family home, as well as if any spousal support will be needed.

Additionally, many individuals worry about the impact divorce might have on their finances and how they will provide for themselves in the future. Although some lifestyle changes are often necessary, there are many steps a person can take to begin building his or her own credit, savings and financial identity.

How to Handle Finances Before and During Divorce

If considering divorce, start protecting your financial interests as soon as possible. For example, collecting your monthly bank statements and past tax returns will be beneficial at your initial consultation with a divorce attorney. In Massachusetts, there is a requirement that the parties exchange three years of financial documents, including investment, retirement and bank accounts.  Also, be sure to avoid unnecessary major expenditures, check your credit report for any errors and begin to build savings for the post-divorce transition.

Once it is time to officially file for divorce, a person will discuss with his or her attorney a tentative budget that includes expected costs. Factors that are considered include a person’s:

·         Income and earning potential

·         Child care needs

·         Necessary living expenses

·         Child or spousal support needs or obligations

·         Anticipated health or insurance costs

·         Life Insurance to ensure support can continue in the event of an untimely death of a party

·         Assets (owned either separately or jointly)

·         Outstanding liabilities

This analysis should provide a good idea of how financially prepared a person is to live a single life and whether any assistance will be needed from his or her spouse. However, the preparation does not stop there.

Most people have beneficiaries listed in their will and on life insurance policies. Do these need to be changed? Have all jointly owned bank accounts or safety deposit boxes been closed?  Does your spouse have access to your credit card as an authorized user? It is often wise to  close joint credit cards or at least terminating access to your spouse's use of a credit card that could adversely affect your credit rating.  If you are unsure whether your spouse is a co-obligor or simply an authorized user, contact your credit card administrator to verify the status. 

It is always best to avoid financial complications down the road and begin preparing today. Speak with an experienced divorce attorney to discuss your options and to begin protecting your financial future.

Braving Valentine's Day: Four EssentialTips to Surviving the Holiday

February 14th marks a day that symbolizes love all over the materialized world. Or, if you are in the midst of a painful divorce, this couple-oriented "Hallmark holiday" can feel like a dreaded event, painfully at odds with what you are experiencing in your life at the moment. Despite whether you choose to shun Valentine's Day or long for years long past, it is important to recognize this day as one of growth and potential for the future.  By keeping in mind our four simple steps, you can turn this Valentine's Day into an encouraging, transformative experience.

1. Value the power of change, and the opportunity that lies in your future. Valentine's Day does not have to be an isolating experience, despite all of those cheesy television advertisements selling romantic escapes and chocolate hearts. This is the most important time to think positively, and remember that this is the the first Valentine's Day of your bright new future! You have overcome the most painful part of divorce, and this Valentine's Day should symbolize your emotional strength, acceptance, and willingness to put your best foot forward.
2. Learn from your experience. Divorce is painfully draining, both physically and emotionally. However, oftentimes it is the way in which we react to even the worst of life experiences that teach us the most about our inner strength and resilience. Apply this deeper understanding in other areas of your life to better your relationships in the future.
3. Make time for YOU this week. Time runs sparingly between work obligations, managing your family's multiple schedules, and trying to adapt to any changes the divorce may have created. It is important to recognize your need for time to yourself, in order to recognize and understand your new identity, and most importantly, embrace it.
4. Accept that change is inevitable, and good. Divorce is a major emotional transformation, and because of this experience you will learn to live a happier, more  fulfilled life. From our failures, we are able to decipher what we truly want from life: whether it be a new career, traveling, or to take that cooking class you've been thinking about, now is your time to take the reigns and embrace your new identity.