As part of a divorce, individuals need to understand both their marital financial situation as well as their financial situation after the divorce. It may be necessary to take inventory of assets and then take a look at income for living and other expenses after the marriage is officially dissolved. Individuals may also need to alter their estate plans and update beneficiary designations after the divorce is final.
Marital assets will be split between both parties. In some cases, they may be split relatively evenly between the former couple. However, the financial needs of an individual may dictate that he or she receive spousal support, the marital home or a larger share of assets in general.
If one party is required to make spousal or child support payments, it may be necessary for that person to get life insurance. A policy may provide lump sum or monthly payments to fulfill financial obligations in the event that a spousal or child support payee dies. It is important that the agreement, once negotiated and arranged, is put into writing and signed.
In a divorce, a variety of assets may be eligible to be split between a former couple. For instance, real estate holdings or retirement accounts may be divided as part of a settlement. Those who are going through a divorce may want to talk to an attorney about how a final settlement may impact their finances. An attorney may review the case to determine how to split marital property in a way that conforms to state law while leaving both sides with sufficient financial security.