AVOIDING FINANCIAL PITFALLS DURING DIVORCE

On behalf of Craig E. Gibbs, Attorney at Law posted in divorce on Monday, June 11, 2018.

When couples in Louisiana divorce, they can face several challenges. While there is a range of emotional issues that can accompany the end of a relationship, the separation can also have many long-lasting financial effects. By keeping in mind some key issues, one can protect themselves throughout the divorce process and post-divorce era of their lives.

The asset division process generally presumes that both parties will continue in their present situation for the foreseeable future. Ultimately, the process should ensure an equitable split of the couple’s marital assets. However, divorce settlements can also include forward-looking obligations like spousal support or agreements about how a child’s educational costs will be covered in the future. These agreements often do not include exceptions that address financial changes or hardships that could occur in the future. By building in the purchase of insurance into the settlement or creating clauses that address these types of changes, exes can protect themselves while creating a workable plan.

In addition, detailed communication and information sharing can be critical to ensuring the financial settlement is actually equitable. This can often be an issue when a settlement includes an allocation of how children’s costs will be handled. By developing a system to communicate about these matters, parents can ensure the settlement is as fair in practice as it is on paper.

Handling the financial matters that accompany divorce can be complicated and require making a new financial plan for the future. A family law attorney can advocate strongly for the interests of a client in family court or during settlement negotiations in order to achieve a just resolution.

Tags: Divorce

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