If a divorce is amicable, both parties could be better off financially in the long run, according to a financial advisor. Trained mediators who handle financial disputes might help each partner work out a fair and equitable share of their assets and combined incomes. Most states, like Texas, have a wide range of mediators available for consultation. Most of the stress during a divorce is finance-related; individuals often have to change their lifestyles and cut expenses. In some states, assets can be cut nearly in half during a divorce.
One of the biggest issues during a divorce is deciding who gets to keep the house. Sometimes the couple’s home ends up having to be sold and two smaller ones purchased. Allocation of assets is important and, if possible, IRAs should also be split equally, with each party receiving some kind of equity from that and the home sale. The easiest way for the spouses to get their fair share and a balanced outcome is to be respectful on the issues and to work together to come to a solution.
Couples are advised to call in a financial advisor during the early stages of a divorce in order to go over everything in detail, according to one financial planner. Many of the issues and emotions during a divorce can be highly sensitive, and a financial planner should be able to see things from a professional point of view.
While financial planners should come in early, couples are advised to avoid involving a divorce mediator in the financial aspects of the divorce. However, involving an attorney who has experience in family law, divorce modifications, alimony and other divorce-related issues is one way to learn more about the divorce process and how parties can come to a cooperative agreement.
Source: Financial-Planing, “Divorce Ahead? Help Clients Get a Fair Deal”, Elliot M. Kass, November 21, 2013