Arizona couples going through divorce recognize the ups and downs involved in negotiating a financial settlement. Our firm helps divorcing parties resolve matters relating to finances.
Forbes compiled expert words of advice about how divorcing couples can handle key financial considerations.
Understand your finances
You must understand your overall financial picture. This includes income, expenses, retirement and investment accounts and tax liabilities. People sometimes underestimate their post-divorce expenses, so figure out which expenses are essential and which you may no longer share with a spouse. You and your partner must give special attention to estimating all expenses necessary to raise and educate your children, and specify which costs each parent will cover.
While you may find it tempting to argue for assets that carry emotional attachment, recognize that these assets may not provide sustained financial support.
Factor in your retirement accounts and life insurance
Retirement accounts may have valuable tax benefits, so exercise caution to avoid a taxable event when dividing these accounts. You must also be thoughtful about how to handle your life insurance policy. You may think the path of least resistance is to keep your partner as your beneficiary, but doing so may have unintended consequences.
Take your time, and consult with your advisors
Be cautious about making decisions hastily. Emotions may get in the way of clear thinking. Your attorney and financial and tax consultants can guide you toward structuring a settlement that complies with law, includes thoughtful tax planning and supports long-term financial stability.
Mediation may have several advantages over litigation, including cost savings, confidentiality and efficiency. Please visit our website for information about the benefits of mediation in divorce.