Divorce is a life changing experience that requires significant planning. It not only affects the lives of both parties and their children today, it also has a huge impact on their future. One of the biggest mistakes people make before filing for divorce is neglecting to prepare their finances. The truth is divorce does not come cheap. Between legal fees, alimony and child support along with the division of assets and property, it all adds up to thousands of dollars. If you are planning to file for divorce, it is never to early to prepare.
For most people in Miami, the most important financial decision is buying a house or paying for their child’s college education. However, those decisions become even more crucial during a divorce. The divorce process has enough twists and turns to make the heads spin of even the most experienced financial advisors. Although many financial advisors are knowledgeable about how to effectively invest money, they may not be familiar with Florida divorce laws that can affect the financial status of their clients. If you are planning to file for divorce in Miami, here are five important decisions to make concerning your finances.
- Seek Assistance from a Professional: Help is an easy word to say. But it can often be a difficult thing to do. Because divorce can become emotional, it is easy for many people to make bad decisions. When choosing a financial advisor, select an experienced professional that has some basic knowledge of divorce law. It is also important not to choose an advisor also used by your spouse. It can often create a conflict of interest.
- Insure Alimony and Child Support Payments: Alimony and child support are necessary remedies to help a financially weaker spouse maintain the same lifestyle they had during the time of marriage. But if what if a person providing the child support and alimony suddenly dies? It is important for the support recipient to insure spousal and child support payments. The party receiving child support and alimony should own the policy to prevent the paying spouse from making any changes to the beneficiary or avoid paying premiums.
- Choose Your Assets Wisely: The division of assets is one of the most important factors of a divorce decree. But it is also important to have a financial advisor to properly evaluate each asset and create a cost-benefit analysis. Your advisor is able to make projections of each marital asset by analyzing important factors, such as risk, taxes and liquidity. The results allow clients to make more sound financial decisions.
- Evaluate Your Taxes: One of the most overlooked factors of a divorce are the taxes on assets. For example, there are major differences in taxes between financial assets and real estate assets. The person who is awarded the house during a divorce settlement will be facing a much higher tax bill. To avoid this type of disparity, one solution is to make an agreement with your spouse to co-own the property, ideally until the children are fully grown.
- Prepare for a Change of Lifestyle: Unless you are extremely wealthy, the truth is your lifestyle is going to be diminished. This especially affects women who have not worked for a significant amount of time. It is extremely important to create a feasible budget and stick to it.
A Miami Divorce Lawyer Can Help
Divorce can be an emotional and confusing time in anyone’s life. One of the best resources to help get through this difficult time is to seek representation from an experienced Miami divorce lawyer. Attorneys often have to wear many hats. Their job is to help protect the rights of clients and look out for their best interests. But they can also provide valuable advice to help clients prepare for life after divorce. To learn more on how a Miami divorce lawyer can help, contact the Aventura Law Offices of S.G. Morrow & Associates and schedule a consultation to discuss your case.