Financial Considerations When Getting a Divorce

Divorce often has a negative financial effect on people, but this can be particularly true for a person in North Carolina who is a stay-at-home parent or for people who are divorcing late in life. For example, older individuals may want to revise powers of attorney that give a spouse medical and financial decision-making power in case of becoming incapacitated. They may also want to take steps to make sure the soon-to-be ex-spouse does not inherit property in case of death.

Unexpected disability or death can happen at any age, so younger people may also need to make backup plans. For example, if one person will pay spousal or child support to the other, the other person may want to take out a life insurance policy in case the support-paying spouse dies. Divorcing individuals of all ages should create a short-term budget. They may need to anticipate expenses such as getting a new vehicle and moving to a new home. This budget can be revised later for longer-term purposes.

When dividing property, people should be aware that some assets may incur taxes and thus might be worth less than they appear. A person who keeps the home should make sure that paying the mortgage on a single income along with taxes and upkeep is affordable.

In some cases, couples who are getting a divorce might be able to negotiate a settlement without going to court. However, in other cases, this might not be possible. One person may be trying to hide assets or may simply be uncooperative. There might be too much conflict between the two, or there might even be abuse. In these situations, an attorney may be able to assist a person in preparing for litigation where a judge will decide on property division and child custody.

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