The family home is usually the largest asset that divorcing couples need to deal with. It's also one to which many people feel a deep emotional connection.
With divorce, it's not just your retirement you'll need to worry about. If you have college savings accounts for your child or children, you'll need to account for them and determine what happens to the money. If only one of you was saving money to the account, this could be a particular point of contention. It might also be a concern if you think the other parent wants to take the money for him or herself despite what it's intended to be used for.
If you've decided it's time to get a divorce, then there are a few things you will want to make sure you don't do. Making the wrong decisions now can impact your financial future, so consider these factors before you agree to any settlement.
For decades, research has shown that women are more likely to initiate divorce than men are. One might think that this imbalance would have started in recent years as women have become more independent -- financially and in just about every other way. However, one sociologist found that as early as the 1940s, women initiated two-thirds of marital break-ups.
Divorce comes with many hardships, from starting over to splitting assets you may have shared for years. Here are a few things to think about before you opt for divorce.
Sometimes the financial and property distribution impacts of a divorce can linger long after the final papers have been signed. That's what Raquel Regalado is saying. Regalado, a school board member who is running for mayor of Miami-Dade County, has reportedly been notified by the county appraiser that a lien will be placed on the Miami home that she and her younger brother co-own if she doesn't pay nearly $4,000 in fines and property taxes she owes on the house she shared with her ex-husband.
The issue of what to do with the family home is generally one of the largest financial considerations for divorcing couples, particularly if one spouse wants to continue living there. It may be virtually impossible for that spouse to afford the mortgage and upkeep alone.
We've all seen the television commercials that tell us that not enough Americans do adequate financial planning for their retirement years. Interestingly, a study by Fidelity Investments found that people are doing even less planning for retirement than they were just two years prior.
We're all much smarter in hindsight, right? Unfortunately, when going through a divorce, mistakes can be costly. Whether they're made from lack of knowledge or emotions such as anger, too many people realize at some point that they should have done some things differently.
Many couples reject the idea of a prenuptial agreement because they believe that it's "planning for failure." However, whether you choose to get a prenup or not, doing some wise individual financial planning and saving during your marriage can help prevent unexpected and unpleasant consequences should the marriage end. Further, it's important that both spouses are involved in the financial decisions, managing the budget, paying the bills and saving for retirement.