Divorce is an intricate process, especially for couples with massive financial holdings. The wife of the former lieutenant governor of Texas recently sued her former husband due to an alleged unpaid divorce settlement.
Even if you have nothing like that in your own divorce proceedings, you still have to watch out for some financial aspects. You do not want to get out of marriage on an unstable financial footing, so you need to consider these fiscal issues before finalizing anything.
In a marriage, both spouses plan toward retirement together. They may have a single retirement account with one spouse working and the other staying at home to raise the kids. After a divorce, those plans change. The spouse with the retirement account may have to surrender a portion of it while the spouse who stayed at home has to plan for the future accordingly. Both parties may need to look for new ways to save for life after 65.
Additionally, you may need to consider where your insurance comes from. You may have received health coverage from a spouse’s healthcare plan through his or her work. Now, you have to make other accommodations. You have to budget for insurance going forward because you may now have to pay out of your own pocket to get it.
One spouse may have stayed at home to watch the kids, but now, that spouse must seek employment. Both parents have a responsibility to figure out what to do with the children and how to pay for any childcare. This is another expense you have to anticipate before you even file for divorce, so you should start saving for it immediately. You should also talk about potentially adjusting your work schedules so that one spouse can spend more time with the kids. It is one option for making sure your kids have the support they need going forward.