The end of a marriage is often an emotionally draining event, especially when children are involved. However, there are financial implications of a divorce that should not be overlooked or ignored. For instance, an individual may need to pay more for utilities, rent and other expenses that may have been covered in the past by a spouse's second income. Even if an individual is receiving alimony or child support, overall expenditures may rise.
It is also important to budget for legal fees after a divorce. In most cases, it is necessary to involve an attorney to properly dissolve a marriage and make the divorce official. Those who are at the outset of the process are advised to consider all of the financial implications prior to meeting with an attorney and create a list of all separate and marital debts and assets.
It may be a good idea to also talk to a financial adviser who may be able to explain the tax implications of getting a divorce. Additionally, it may be worthwhile to go through beneficiary designations on insurance, retirement and other accounts to make sure the right person is listed. Taking care of these and other matters before the divorce is finalized may help individuals avoid making poor decisions that may create problems down the road.
There are many divorce legal issues that will come into play during the proceedings, depending upon the couple's family and financial circumstances. If the couple has young children, then child custody and support will need to be addressed. Alimony may be an issue if one of the spouses gave up a career in order to take care of the household duties. A family law attorney can often be of assistance to a divorcing spouse in negotiating an agreement that addresses these matters and which can be approved by the court.