Many people probably have a view of divorce primarily as a way to get a clean break from an unhealthy relationship and move on with life. While this may be true in many cases, the unfortunate reality is that a divorce involves much more than simply parting ways with a spouse, especially if it is a high asset divorce.
A recent article noted that many people who are considering a divorce do not think ahead to the significant financial impact that a divorce will have on a person’s life. Even in the most run-of-the-mill divorce there will be issues to address in terms of the division of marital property or asset valuation. But, with a high asset divorce, the prospect of complex asset division means that many couples will need to make tough decisions on real estate, retirement plans and business assets. As a result, after the divorce each spouse, now newly-single, will be left with quite a different financial portfolio in the aftermath.
Taking notice of these types of issues, the recent article noted a few suggestions that may help. The most important tip: information. Getting the right information and becoming knowledgeable about finances and accounting can go a long way in helping an individual going through a divorce to know what to fight for and what to let go. The right information can also help when it comes to tax planning and how best to protect property interests.
There is no right or wrong way to approach a divorce, despite the plethora of opinions by so-called experts. However, there probably isn’t anyone who would dispute that having more information about the divorce process or how assets are valued is a bad thing.
Source: The Huffington Post, “Financial Tips That Ease the Sting of Divorce,” Julian Block, Dec. 25, 2013