When it comes to the financial aspects of divorce, it not just lack of understanding of the family’s finances, it’s the lack of information about a family’s financial picture that tends to make good financial decisions challenging for couples when they decide to divorce.
One spouse may know more because they managed the family investments or were in charge of paying the bills. After all, the couple may have thought it would be a waste of time for both to balance the check book twice every month so one takes the responsibility and tends to keep doing it throughout the marriage.
Important decisions to be made when negotiating your settlement need high quality information from which to judge the options. The spouse with less knowledge may spend more time collecting documents, working on past and go forward budgets. This is the most important part of divorce financial planning. Decisions regarding finances are based on choosing one option relative to another. If you are confronted with a decision you must make based on limited information you risk reaching a poor conclusion that may affect you for a long time. That’s why divorce financial planning before, during and after is critical to your future when dealing with separation and divorce.
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