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Financial impacts of divorce in Montgomery, AL

On Behalf of | Feb 10, 2021 | Divorce

The process of going through a divorce is difficult emotionally and mentally but can also wreak havoc on your finances. Not only are you potentially dealing with lawyer fees and court costs, but you are also facing the prospect of living life on one income when you may have grown used to two. Divorcees in Montgomery, Alabama should educate themselves on some financial steps they can take to put themselves in a better financial position once the divorce is final.

Update your estate plan

In many estate plans, people list their spouse as their medical and financial powers of attorney in addition to giving them the role of executor. Once your marriage ends, you probably don’t want to leave your ex in such a position of power. Once the divorce process begins, you should make begin updating beneficiary forms and all other documents involved in your estate plan.

Don’t forget retirement accounts

You should obtain a copy of your 401K plan in addition to your spouse’s. Having your own documentation about what each of you has in retirement accounts can help with a part of divorce that sometimes becomes very tedious. If your divorce is amicable, you and your estranged spouse and employ the services of an ERISA specialist to help untangle these accounts.

Consider selling your home

It is not uncommon for both partners to fight for ownership of the marital home, but many times the expenses associated with keeping the home aren’t worth it. Instead of trying to keep a home that could be larger than either party needs, consider selling it and splitting the proceeds once you pay off the mortgage.

Even in the most amicable of situations, you should contact a divorce attorney to help you navigate the divorce process. This attorney can help you gather documents that you need and negotiate on your behalf.