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Family law: Navigating financial decisions during divorce

On Behalf of | Jan 16, 2020 | Family Law |

Washington couples who have decided to end their marriage know that the financial implications of such a decision can create significant challenges. As well, during a process that is, typically, already fraught with tension, many divorcing people may feel some anxiety at the thought of entering the area of family law, particularly those who are unfamiliar with the territory. With these points in mind, separating couples are smart to become as informed as possible about financial decisions that will affect their future, as well as any children from the marriage. Several financial experts offer advice to divorcing people to help reduce the inevitable stress and increase the chances of future financial security.

First, divorcing individuals should educate themselves on the state of their finances. It is important to thoroughly understand household cash flow, including all expenses and income. People are advised to think about their priorities concerning expenses and consider various settlement possibilities prior to negotiations, and to know about any tax consequences and recent tax law changes. Some people may find it tempting to speed up the process of making financial decisions, but experts advise to not move too quickly, as such decisions often have long-term effects.

Divorcing people are also smart to carefully consider future financial needs when negotiating. Post-divorce, most people will encounter added costs, as they will be financially responsible for many expenses they once shared. Alimony and child support often factor in as well. Considering these points, people are advised to adjust quickly to any new lifestyle costs to preserve assets for their future needs. To avoid disputes later, divorcing parents should also carefully consider all possible expenses in their children’s future before settling on child support.

Typically, divorcing people encounter numerous challenges before reaching the final divorce decree, and beyond. Many Washington residents who have gone through or are going through the divorce process will attest to the fact that financial decisions are a common contributor. However, many people in this position find help with tips such as these, sometimes along with the guidance of a financial advisor. As well, an experienced family law attorney can be a valuable legal resource through all aspects of the divorce process.

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