Divorce is now as much a truth of life as marriage. Although, its insinuations on personal finances are still not dealt with effectively.
Divorce is now as much a truth of life as marriage. Although, its insinuations on personal finances are still not dealt with effectively. Avoiding monetary planning before a lawful parting can set hurdles in the lives of both individuals involved. A little consideration can at least help address the economical impact of divorce to a large level.
1) Protect children’s future
Irrespective of the provisions of the child’s custody, his/her future must not be affected in terms of monetary planning because of the separation. If there are ‘child plans’ that have been financed together, then suspending them can lead to penalty charges. It makes logic to maintain such policies and resolve to finance them alternately. Even after the divorce, one still continues to be a parent and the responsibilities of the children must be shared mutually. Even in case of a single earning spouse adjustments must be made to save for the children by controlling expenditures.
2) Distribution of shared properties and liabilities
List down all your family assets like fixed properties, investments, insurance etc, this list is imperative before looking for the help of a legal advice. Properties can be divided based on the input of each partner if they do not reach an accord. Any joint liabilities have to be split from individual debt. They can be blocked if it is in the best interest of their monetary health after the divorce or if it is so wanted by both spouses. If the joint liability is supported by an asset like a home loan, then the bank has to be considered of the circumstances. After arriving at an agreement, inform the change in details and recipients on all future investments and insurance plans.
3) Sharing of household items
Household items like home appliances, television sets, furniture etc. have little or no re-sale worth. Even if the sale brings in a decent cash flow, the re-placement worth of such goods is still high due to rising prices and shifting technology. Couples can decide to split these items. Sell them only if no agreement is reached at.
4) Prepare for future
Alimony and child support can act as a help, but it might not always be adequate. In India, most monetary problems after-divorce happens with women who have never worked or left job after marriage. Skill-set development courses to assist them get a job or a regular revenue flow may be considered in such cases. If both spouses are employed then personal finances may not be badly affected by planning further on.
5) Mutual approval
Divorce affects all features of personal finance and can’t be ignored. If separation is taken with mutual assent, the counsels of both spouses help them reach an agreeable accord. A conclusion arrived by this course eases the load of rising legal fees otherwise found in sour fight for division of properties.