Life is full of transitions—graduating high school, college, starting a new job, marriage, or having a baby. Some transitions later in life can be more challenging—illness or injury, the death of a loved one, or divorce. In life's biggest transitions, we will often have to confront financial hardship as well as the emotional and personal struggles of getting through tough times. When facing a personal transition, such as divorce, it is important to have a clear understanding of how to protect yourself and your financial security.
When faced with an unexpected life event, you may feel the urge to make quick decisions or act while emotions are high. It is best to take a well-planned and strategic approach that will benefit you and your family in the long run. Our Birmingham family law attorneys are committed to helping clients protect their rights and long-term interests. We will help you to review your options, identify your priorities, and work towards the solution that meets your family's needs. Knowing that divorce can bring stress, anxiety, and a sense of instability, our priority is to help you keep perspective, while protecting your legal rights in the process.
Here are some tips to help you make sound financial decisions during transition, including divorce:
Know your priorities: When making important financial decisions during a time of transition, it is important not to lose perspective. Know what is important and be sure to focus on your real priorities.
Don't accumulate new debts: Review your assets, debts, and income and be realistic about your spending patterns or habits. Don't make your situation more complicated by accumulating new debts. You will want to be sure that you stay on top of your mortgage or rent, as well as paying off your high interest debts, including credit cards.
Plan ahead: When going through a life transition, you will still want to remain focused on your long-term goals. Do you want to keep your family home? Continue saving for your children's college fund? When facing divorce, it is important to consider your long-term financial plans so that you can lay the proper foundation to meet your goals.
Divide joint accounts: When you make the decision to divorce, dividing joint accounts will save you and your spouse future headaches. Even if one spouse runs up debt just to hurt the other, credit card companies will look towards both names if they are still on the account. Even before a divorce is finalized, you should work to divide assets and “uncouple your finances” as soon as possible. An experienced attorney can help protect your rights to personal savings, retirement accounts, child support or spousal maintenance.
Seek out necessary financial and legal resources: If you are struggling and in need of help, there are significant professional resources, including financial planners to help you. There are also online resources to help you get organized or make the necessary sacrifices to get you through this difficult transition. An experienced advocate can also help you identify your objectives and protect your legal rights.
Contact Birmingham divorce and family law attorney Steven Eversole at (866) 831-5292.