There can be little doubt that a major life event can trigger a financial change for an individual. This is especially true for anyone going through a divorce. With a little forethought and planning, however, it may be possible to avoid severe financial difficulties. Here are a few tips for residents of British Columbia to help with the fiscal realities of life after a marriage is over.
How a person chooses to end his or her marriage can make an immediate and significant impact on his or her bank account. Opting to pursue some manner of alternative dispute resolution, such as mediation, may be far more cost-effective than going to court. Of course not every couple is able to work in collaboration through a divorce, but those who can may realize significant financial benefits.
It is also important to understand one’s own financial standing. Take the time to make a detailed assessment of all assets and liabilities. This should include checking one’s credit for any unexpected debts and liens; financial action taken by one spouse can impact the other without he or she even realizing it. Knowing the exact look of one’s financial picture will help pave the way toward a fair settlement and target areas of concern for budgeting.
Now is also the time to update wills and other estate planning tools. More often than not a married person names a spouse as beneficiary to his or her estate, and may even have granted power of attorney. In all likelihood, one would want to remove an ex spouse from these types of arrangements and ensure they are recast with more appropriate individuals.
These are just a few of the behaviors and actions a person can take to ensure financial well being during and after a divorce. An experienced British Columbia family law attorney can help with every aspect of a divorce, whether a person chooses litigation or negotiation. With a lawyer’s guidance, it may be possible to emerge from a divorce on a sound financial platform from which to start over.
Source: forbes.com, “How To Succeed Financially During And After A Divorce“, Mark Avallone, Jan. 27, 2017