No couple gets married with the intention of someday ending the marriage. However, this is what happens to half of all marriages in the United States. Without question, divorce can be emotionally and psychologically tough. As many Arizona residents know, divorce can also be very expensive. Here are some financial tips for those going through this situation.
Having a post-divorce budget is extremely helpful. Living separately often costs more than living together, so keeping track of expenses is key. Often not accounted for are the actual costs of divorcing. Although it can be tough, think of this as any other big life event, and earmark money that may be used to pay for the actual divorce.
One of the most complicated things during this experience is dividing up assets that were accumulated during the marriage. The house is usually one of the main items for which ex-spouses may fight. However, if liquidity is desired, taking the house may not be the best move. Assets, such as brokerage accounts, can be quickly and easily liquidated. Also, for those in a higher tax bracket, consider assets with less tax implications.
During this time, it is always recommended to update financial accounts and documents while also reviewing beneficiaries on retirement accounts and insurance policies. Going through a divorce is definitely expensive and confusing. The most important piece of advice for Arizona residents who are experiencing divorce is to consult a legal representative. The legal knowledge and expertise of an experienced family law attorney can prove invaluable throughout this difficult and confusing process.