Alabama Divorce: Lack of Savings & Other Financial Implications

Posted by Steven D. Eversole | Jul 05, 2012 | 0 Comments

MSNBC recently reported that nearly one-third of Americans don't have enough money saved for an emergency. And more than a one-fourth have no money set aside at all. Job loss, a medical emergency or an Alabama divorce certainly qualify as life emergencies.

And the truth of the matter is money concerns are almost always among the primary considerations when couples split. Having no savings or being on questionable financial ground can even prolong a marriage by postponing divorces, which is something we saw a bit of during the economic downturn.

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However, consulting with a Birmingham divorce attorney is frequently the first step in addressing your concerns and answering questions regarding the financial impact of divorce as it relates to your particular financial situation.

Only 25 percent of those surveyed had six months savings, which is the amount recommended by money pros. Half of respondents indicated they could not go three months without a paycheck. On the bright side, that's an improvement from the 61 percent who didn't have three months living expenses in a survey conducted six years ago by Bankrate.com.

Properly executing a divorce takes planning. Sadly, far too many couples never recover from a poorly executed divorce. Particularly for women, a divorce late in life is associated with an increased risk of poverty in retirement.

When given a choice (and sometimes circumstances beyond our control force us to act sooner than you might otherwise wish), we suggest contacting an experienced Alabama family law attorney before even announcing your intentions to a spouse. The reality is if you are contemplating divorce, it's time to start thinking like an individual.

This can be particularly critical if your spouse is the primary wage earner in your household or if he or she has long been responsible for keeping track of the family's finances. Gathering paperwork and determining your financial and other objectives is frequently best done before announcing your intentions to split, which typically makes for ice on the home front.

An experienced divorce attorney in Birmingham can also assist you with what to expect, both financially and otherwise. Even those who think they are financially prepared for a divorce may not have carefully considered all of the implications of supporting two households on the same income.

The recession provided a wake-up call for a lot of people. Many spent time paying down debt and building savings. Divorce rates also declined. But recent evidence suggests those who have delayed divorces are now seeking their freedom. And a recovering economy is once again spurring couples and individuals alike to take on new debt.

Often, there is not good time financially to seek a divorce. However, proper planning and execution can go a long way toward ensuring your future financial security and your standard of living and quality of life are not permanently harmed in beginning anew.

If you are contemplating a divorce in Birmingham, contact Birmingham Family Law Attorney Steven Eversole at (866) 831-5292.

Additional Resources

Nearly 3 in 10 have no savings for an emergency, by Allison Linn, MSNBC June 25, 2012.

About the Author

Steven D. Eversole

J.D., Samford University's Cumberland School of Law, Birmingham, Alabama B.A., University of Alabama, Tuscaloosa, Alabama

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