When an individual considers filing for divorce, there is a lot of preparation that should be done to ensure an outcome that each spouse can live with. Let’s face it; negotiating a divorce settlement agreement is like negotiating a contract. Prior to a negotiation, both sides prepare for an outcome that they want.
Each party will think about what they want to come out of the negotiations. They will think about what terms they want and how they want them to be written. They will prioritize what they are willing to compromise and what they are not willing to budge on. Not only do they think about their goals, but they prepare documents that will support their position.
Divorce works much the same. Each spouse should think about what they want the divorce settlement to say and gather documentation such as financial papers, pictures, insurance policies and much more. But deciding what the divorce settlement will say is not the only factor to consider for post-divorce life.
The same documents that are used to negotiate a divorce settlement agreement should be looked at closely when considering how a financial picture will change after a divorce is finalized. It is important that an ex-spouse is aware of exactly what finances will be available to them after the divorce and what expenses they will have. Going from a two-income household to a single-income household even when child or spousal support is in play will change how an individual makes their daily decisions.
Some attorneys will work in cooperation with a financial advisor to ensure that not only the terms of the settlement are beneficial to their client, but so that the client is prepared for life after divorce.
Source: Detroit Free Press, “Before divorce, get financially prepared,” Hadley Malcolm, Sept. 11, 2012