It is natural for some people to want to quickly get their divorces over with and move on with their new lives. While that can be a preferable way to approach divorce, a recent resource warns readers about the financial risks of not taking the time to fully consider the financial details of a family’s divorce settlement.
Specifically, financial experts claim that most divorce settlements fail to take into account the future values of certain accounts and assets. That failure, a result of short-sightedness, can put certain parties of divorce in financial hardship that they are not prepared for.
By relying on a financial expert in addition to an experienced divorce attorney, people can look at the bigger picture of the assets on the table during a divorce settlement and more fairly divide property.
For example, a spouse might get the couple’s house in the settlement — often the wife ends up with the family home. And the other spouse will often get what is saved in a retirement and/or other savings accounts.
Even if the value of what is in the accounts is equal to the value of the house today, a house’s value is not stable or liquid. An account, depending on its type, can earn interest over time, whereas a house (especially in today’s market) can significantly decrease in value. A home also takes upkeep, which equates to a great deal of money.
Some couples approach the division of assets by selling their family home and dividing that value in half. But a home is not the only asset that can be tricky to account for when coming to a divorce settlement. Couples often have money saved or invested in various accounts of all types and sizes.
By acquiring a financial expert on your team to work beside your attorney, they can effectively measure the real and future values of different kinds of accounts. By considering details like taxes, appreciation and inflation, financial help can leave you with the settlement you actually want and deserve.
montgomeryadvertiser.com: Long-term finances often are ignored in divorce settlements (8/3/2010)