Going through a divorce can be an emotionally taxing experience. As such, estranged California couples may not be in the best state of mind to make financial decisions that will have a major impact on their lives after the divorce. To potentially prevent major financial missteps, people should ensure that they understand the implications of any decisions they make, even if they have a financial planner and a family law attorney on their side.
One major mistake that should be avoided is keeping the family home if it is no longer affordable. Some individuals want to stay in the marital home, especially if there are kids involved. However, those who do so will suddenly be responsible for the home’s mortgage payments and upkeep on just one paycheck. Sometimes, keeping the family home means giving up other valuable investments, including retirement accounts or brokerage accounts. Financial accounts can quickly increase in value while the home costs money.
Those who are granted child support or spousal support should take out life insurance on their former spouse. This way, if the ex suddenly dies, those who heavily depend on it are not left without that income.
Getting a divorce and splitting up assets that both individuals have worked hard for can be difficult. In some cases, some former couples may just want to get the divorce finalized so that they can move on. However, failing to consider the future implications of the decisions being made can cause problems in the future. A family law attorney could assist with the property division aspect of the divorce to help prevent financial missteps by a client.