When facing a divorce, a Massachusetts couple will likely consider equitable distribution of things, such as which spouse will keep the house, child custody and spousal support. However, there is much more to the divorce process than just equitable distribution of assets and property. There are long-term financial consequences that should be considered by both parties when working through a divorce.
A divorce can have a major financial impact on an individual and family. Before or during the early stages of a divorce, it is beneficial for both parties to gather the financial information all assets. This includes retirement funds, long-term savings, vacation properties and more. Organizing tax records can also expedite the process of determining child and spousal support.
Massachusetts couples may not ever consider which spouse will carry the debt burden leftover from the marriage. This is especially important for a couple who has a large amount of debt from credit cards, medical bills or a mortgage. This may make it difficult to establish separate finances, but it can be done with the correct preparation and legal guidance. It should be noted that couples should clearly designate in a divorce settlement how retirement funds and other long-term savings will be divided.
Separating finances is one of the most complicated aspects of a divorce. Equitable distribution is a common goal for many individuals facing a divorce, but the long-term impact of financial distribution should be carefully considered. When an individual enters the divorce process with clearly established goals and organized financial records, it can make the process less stressful for all parties.
Source: Alice Echo News Journal, “Five financial considerations when you’re going through a divorce“, Paul F. Rycroft, June 7, 2014