Managing emotional difficulties in divorce can be difficult enough, but couples should not lose sight of the importance of financial considerations.

The divorce process can be difficult on many different levels. Emotionally, for example, individuals must face the challenges associated with ending a long-term relationship and beginning a new chapter in their lives. Individuals can also face difficult questions about their financial status after their divorce is complete. Fortunately, couples can take some simple steps to ensure that they are able to hit the ground running post-divorce.

First, each individual should sit down and make a personal net worth statement. This should include both marital and individual assets and debt. When looking at assets, it is important to include income from, for example, stock dividends or rental properties. A list of debt should include both mortgages and credit card debt. As part of this initial process, it is probably a good idea for each person to request a copy of his or her credit report.

Second, each individual should make a budget that realistically reflects individual monthly expenses. In many cases, particularly for couples that have lived together for many years, it can be difficult to begin thinking about household expenses on individual terms. As part of this process, individuals should also consider putting away some cash as an emergency reserve.

Third, when dividing assets in a divorce, it is important for each ex-spouse to understand the long- and short-term consequences of dividing retirement accounts and other investments. Couples should be sure to examine the named beneficiaries on, for example, life insurance policies to ensure that they accurately reflect their wishes.

Finally, couples often overlook the potential tax implications of selling real estate or withdrawing funds from a retirement account. It is important to recognize that these actions may significantly impact both short- and long-term tax liability. While it may be tempting to move as quickly as possible to finalize the divorce, taking time to understand the tax implications of various options can help ensure financial stability later on.

Although the divorce process is never easy, the good news is that it is not necessary to go through it by yourself. Indeed, one of the most important steps in beginning the divorce process is to speak to an experienced divorce attorney. A divorce attorney can provide an overview of the divorce process and explain what steps you should take next. Speaking to a lawyer at the beginning of the process can save significant headaches later on. For more information, schedule an appointment with a divorce attorney today.

Keywords: Divorce