When most people enter into a marriage, they hope to be happily married and to live in peace and harmony with their partner forever. No one plans for a divorce or enters a marriage hoping for a divorce. Nevertheless, most Michigan residents are likely all too familiar with the well-known statistic that more than 50 percent of all marriages end in divorce, and likely know a friend or family member who is divorced.
As much as individuals want their marriages to work, there are times when irreconcilable differences arise between a couple, and for the emotional well-being of all those involved, divorce may be the most ideal solution. Alongside the best interest of the children and parties, it is important for the divorcing couple to be cognizant of the impact divorce may have on their financial goals.
In a household that may have once had two incomes, the custodial parent, in particular, must deal with only one income, and determine how to raise a child or children post-divorce on single or no income. Further, the ex-spouses’ must determine how health care will be handled, and how to care for their children post-divorce.
New post-divorce goals pertaining to finances may need to be set. Some recommend that these goals be reviewed and reexamined every six months to a year. An individual should take the time to consider what amount of savings is necessary to maintain their current lifestyle. In addition, it is essential to consider existing debt, evaluate all accounts and check who the beneficiary is on any investment accounts and retirement accounts.
Generally, in any divorce, issues pertaining to child custody, child support, spousal support, division of property and the like are tackled. Nevertheless, both the non-custodial and custodial parents must readjust or reevaluate their future financial goals to fit their new post-divorce reality.
In certain cases, depending on employment status of a parent, modification for child support, spousal support and more may be necessary. In such an event, it may be helpful to consult with a family law lawyer to evaluate one’s legal options
Source: CBS Boston, “Your Financial Role As Somebody’s Ex-Spouse,” Dee Lee, Aug. 20, 2013.