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The importance of financial management during divorce


While residents of Rhode Island know divorce is especially difficult emotionally because of the breakdown of a marriage, it can be equally difficult to deal with financially if a divorcee's financial burden is greatly increased. Paying heavy alimony or child support may lead to great financial turmoil. However, various pragmatic ways to lessen the burden on finances can be employed for positive results.

Planning ahead may be a solution for many. When a spouse senses that a marriage is heading toward dissolution, a meeting with a professional financial adviser may help organize tax returns or monthly bills and provide a financial snapshot of debt and assets prior to asset division. Debts in the forms of credit and mortgages can even be frozen while the divorce issues are settled. Separating finances quickly is the key to managing finances through a divorce procedure, and according to most professionals, can protect a spouse from a vengeful ex during an acrimonious divorce procedure. Joint accounts should be closed to make sure extra cash is not withdrawn without prior knowledge.

Individual budget calculation for separate living can be done by vetting the individual incomes of each spouse against each spouse's responsibilities. It also imperative to make sure that the short term and long term effects of dividing finances are kept in mind. For example, how separating assets would affect retirement plans must be gauged by both parties for a fair distribution.

The most important factor in any divorce case is health and welfare the children. It is of utmost importance to ensure their wellbeing and that they are provided for financially. The lifestyle of the child needs to be evaluated professionally using a prior year of expenses for the child as a guide. Finances are an important factor in any divorce proceeding which are often overlooked during the emotional turmoil affecting the individual parties of the divorce.

Source: WallStCheatSheet.com, "7 ways to manage your finances through a divorce", Kirsten Klahn, June 08, 2014

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