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How to avoid a financial train wreck in a divorce

On Behalf of | Jun 25, 2022 | Divorce

When a Pennsylvania married couple decides to part ways, they typically try to work out terms of agreement for a settlement. Various factors, such as whether there are children involved, may have a significant impact on legal proceedings. Finances are a primary concern for most spouses in divorce. In fact, certain oversights or mistakes can result in serious financial distress.  

Thinking ahead, careful planning and making informed decisions helps protect financial interests in a divorce. There are numerous issues a concerned spouse will want to pay close attention to, as well as several potentially big mistakes to avoid. This is especially true if it is a high-net-worth divorce..  

A special concern for spouses who have relied on their partners’ income 

Many spouses sacrifice careers to stay home full time and raise a family. In such cases, one partner relies on the other for financial support, as well as health insurance and other day-to-day needs. To avoid financial crisis in a divorce, it is critical to assess one’s personal financial status and to be fully aware of one’s financial needs to make ends meet after the income-earning spouse is no longer under the same roof.  

Additional issues that can have a negative effect on post-divorce finances 

It is best to avoid posting certain things on social media while a divorce is pending, including photos of recent purchases. Such posts can work against a spouse in property division, alimony or child support proceedings. It is better to avoid airing personal details on social media and to compile a detailed list of one’s financial needs instead, factoring in any existing marital debts that remain, such as a credit card balance. If legal problems arise regarding specific financial issues in a divorce, a concerned spouse may meet with an experienced family law attorney for guidance.