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Overcoming Some of the Financial Difficulties of a Divorce

Overcoming Some of the Financial Difficulties of a Divorce

Posted By Meyers Law Group, P.C. || 1-Jan-2014

At whatever point in life a couple finds themselves gearing up for a divorce, one of the main problems they face is a lack of awareness of the far-ranging financial effects of the process. The current economy is of no help in this matter either. If you are staring in the face of a divorce, then you need to take financial precautions to safeguard your future plans. Here are some of the steps you can take now.

Take courses. As necessary as it is to work with financial and legal experts, you will get the most out of the divorce process and your financial planning if you yourself have some education when it comes to finances. This could mean taking a class on taxes or investing, or whatever matter you need to brush up on. These courses could help you understand payment of deductions, tax-deferred retirement accounts, living trusts, etc. and how your divorce would affect these.

People who are part of the "gray divorce" trend, those divorcing in their fifties or later, may need to educate themselves on issues regarding their pensions and retirement plans, BUT they have to be especially wary of scams. The AARP surveyed more than 1,000 people who were 55 and older, and they discovered a high percentage of them had gone to a retirement and estate planning seminar that was fraudulent. According to the North American Securities Administrators Association, fake seminars that try to rope attendees into bad investments might be advertised as an event that offers a free meal, education on how to evade financial risk and to inflate retirement funds, etc.

Those issues of retirement accounts and estate plans do have to be dealt with, however. If you have a retirement plan or insurance policy that names your spouse as the beneficiary, you should update this to avoid any potential complications in the future. The same goes for your will and your estate plan. You should likely include an updated letter of final instructions as well. And if you do not have an estate plan, then now could be a good time to create one. If someone passes away without a will, then state laws would kick in, dragging the estate through a lengthy and expensive court process, a process that would be further complicated if that person was in the midst of a divorce or was a divorcee.

Of course, consulting with a financial expert can be of invaluable help. And when you need an expert to protect your financial interests in the divorce itself, you need to find the best divorce attorney possible. You can find the experienced Long Island divorce lawyer you need at the Meyers Law Group, P.C. Find out how a skilled and dedicated legal advocate can help you achieve a swift and positive divorce when you contact our firm today.