Research suggests that women tend to experience greater financial harm in the aftermath of a divorce. However, Connecticut residents of either gender may experience adjustments to their lifestyles after a divorce. Therefore, it is important to understand the potential consequences of ending a marriage and what you may be able to do to overcome them.
Learn as much as possible about your household’s finances
It isn’t uncommon for one person to manage a couple’s finances while they are married. If you ceded control of fiscal decisions, it is important to learn as much as possible about your financial situation during the divorce process. Ideally, you will work with a financial adviser who can talk more about basic concepts such as appreciation or compound interest. You may also learn more about trusts or other tools that may help you protect your assets after a divorce is finalized
Learn more about assets that can help build wealth
In many cases, it doesn’t make sense to keep a family home in a divorce settlement. While the home may appreciate in value, you will also need to make mortgage payments and pay to maintain the property. Instead of putting money into a new roof, it may be best to sell the home and put the proceeds from the sale into an investment portfolio.
Consider your long-term needs
At some point, child support or alimony payments may stop coming in from your former spouse. It is also possible that the child support that you receive isn’t enough to provide for your child’s special needs. You also need to consider what could happen if you were to get sick or otherwise unable to work when crafting a divorce settlement. Taking a long-term view may make it easier to determine what a fair agreement looks like.
Working with professionals may make it easier to obtain what you want and need from a divorce settlement. Ideally, an attorney will play a key role on your divorce team whether you choose to settle it in negotiations or through mediation.