It is a simple but powerful statement: no one can make the best possible personal financial decisions without having a firm grasp on his or her own finances. This is true when it comes to budgeting, saving and investing, and it is particularly true in divorce. In the divorce process, spouses are expected to make life-altering financial decisions in the midst of an emotional whirlwind. The best way for Pennsylvania spouses to navigate through these property division choices is to make a concerted effort to educate themselves on the ins and outs of money matters.
This process begins by gathering documentation on each and every asset and debt that is held, both individually and as a couple. Having this information in place can help provide an overview of one’s financial standing, which is a great place to begin. From that point forward, spouses can begin creating a property division negotiation strategy.
Knowing the full range of marital assets gives a spouse the ability to make solid choices about which assets to pursue during the divorce. Not all assets are equal, and some come with future tax obligations, a lack of liquidity or other encumbrances that must be taken into consideration. For those spouses who are unfamiliar with certain asset types, this is the time to research and educate themselves.
In some cases, Pennsylvania spouses should consider hiring a financial advisor to provide information and guidance during the divorce and property division process. An advisor can also educate his or her client on how to set financial goals, accomplish basic budgeting and devise an investment plan. Divorce is a critical time in one’s life, and the decisions made now will have a lasting impact. Having the support of a professional is a great way to make the most of the assets that are gained during property division.
Source: nydailynews.com, “5 easy steps to protect your money in marriage — and divorce“, Pam Friedman, Feb. 4, 2016