A divorce is a huge transition that affects various aspects of your life. It is extremely challenging, both logistically and emotionally. Many individuals don’t think of financial planning while undergoing a divorce; however, it is crucial you analyze what your financial situation as a single person might look like, before you make any decision about your future.
Going through a divorce process requires emotional resilience and careful financial planning. In this blog, we will explore several insights and tips on how you can protect your wealth through financial planning for a divorce in Boca Raton, Florida.
Knowing Your Financial Landscape
It is crucial you properly understand your financial situation, when preparing for the divorce process. This is an important aspect that involves a thorough evaluation of your liabilities and assets, differentiating between marital and non-marital assets.
Marital assets are those that are obtained during marriage and are subject to fair and impartial distribution. On the other hand, nonmarital assets are items belonging to one spouse before the marriage or through gifts or direct inheritance during marriage.
A skilled divorce attorney in Boca Raton can help you identify, value, and strategize these financial components and ensure there is a solid ground for wealth protection during divorce in Boca Raton. A good strategic plan involves the identification and accurate asset valuation.
Financial Planning Tips for The Divorce Process
Starting your financial planning for the divorce should begin before your legal divorce. This helps you know your future expenses and also offers you time to adjust. Below, we will explore some divorce process financial tips in Boca Raton, Florida.
1. Get the required documents
As part of your financial planning, the first thing to do is get the required documents, which usually include your tax returns, W2s or pay stubs, investment statements, estate planning documents, and expenses worksheet. Ensure you consult with your local divorce attorney to ensure these documents are accurate.
2. Re-assess your budget
There are a lot of cost savings in sharing a household with your partner. Therefore, a major step in financial planning for a divorce is to assess your financial ability in terms of living expenses. These include things such as maintenance costs, utility bills, mortgage or rent payments, and even tasks your partner previously handled that you might now have to outsource.
It might be challenging to create a new budget, but you will get it with time. Tracking your expenses earlier, like while considering a divorce, gives you a head start. Consider speaking to your divorce attorney and don’t instantly make any big decision.
3. Assess your investment
Since the divorce process can be very emotional, you might be taken advantage of by people selling financial products. Don’t purchase financial products or investments that are good for you.
Consider taking your time during the divorce financial planning Boca Raton process to get a fee-only company that does earn commissions. Another crucial point to note as regards investment is that you might have a different portfolio need after a divorce than while married.
Conclusion
Financial planning for a divorce in Boca Raton involves getting a skilled and local attorney who can help you navigate the divorce process.
You might face several emotional and complex issues during divorce wealth management, so you need to be in good hands. If your case is a high-net-worth divorce, it might be more complex. If you are seeking advice on divorce matters, consider exploring the services of a local divorce attorney in Boca Raton who can help you navigate your divorce financial planning.
Related Questions
1. Does divorce affect you financially?
Yes. Money, possessions, debt, and financial assets acquired before and during marriage are divided between former partners. On Average, divorcing individuals might require about a 30% income increase to maintain their standard of living before divorce.
2. How do I make a budget after divorce?
Budgeting for life after divorce involves assessing and prioritizing non-negotiable needs like child care, food, utilities, and housing and removing or reducing unnecessary things. Additionally, understanding your divorce agreement details as child support and or alimony might significantly affect your finances.
