Residents who are considering divorce do not do so lightly. It is a major life decision for which people should be fully prepared. Finances are a common concern. Well after a divorce has been finalized, many people are still experiencing financial struggles because of the case and its aftermath. For those who are thinking about moving forward with a divorce, there are certain considerations that should come to the forefront.
Research from Fidelity Investments suggests that financial challenges finally begin to dissipate five years after the divorce. Certain factors in the study show what people can do to adequately prepare for the inevitable problems. Eighty percent of people who did not take part in the daily finances when they were married expressed regret for that after the divorce. These individuals also had a tougher time getting back on strong financial ground. Forty percent said they still have not fully recovered. Retirement and long-term planning also came up. More than 80 percent of males and females said they took part in daily financial planning. However, 60 percent of females said they took part in preparing for the future.
When considering a divorce, there are steps to take to shore up the financial future. Paying attention and being involved in the finances can be a useful strategy to know what to expect. That includes understanding taxes, knowing how much is in the bank, being aware of retirement plans and discussing these issues with the spouse. Communication is also key. Fourteen percent of those who took part in the study said they found debt they were unaware existed. Ten percent discovered hidden assets. This was common for marriages that has lasted longer than 21 years. Prenuptial and postnuptial agreements can determine which properties belong to whom and provide protection if the marriage comes undone.
Divorce is a difficult process. When considering whether to end the marriage or not, it is useful to be cognizant of all aspects of a case in the present and future. Finances are part of that.
