When people walk down the aisle, they typically do not anticipate getting divorced years down the road. However, unfortunately, a large number of marriages come to an end eventually. People in Massachusetts normally do not want to plan for divorce, but solid financial planning is essential at the beginning of the divorce process to protect against the negative financial impacts of this type of legal proceeding.
Adjusting one’s lifestyle to fit one’s new income following divorce is an important part of the divorce process. With the dissolution of a marriage typically comes a drop in household income. For this reason, knowing one’s cash flow and being committed to living within one’s means is essential for achieving financial success following divorce.
Learning how to handle routine transactions is also important, particularly for the spouse who did not handle duties such as paying the bills during the marriage. Even just a handful of late payments can cause one’s credit rating to drop. A lower credit rating can hamper one’s ability to get needed lending for a home or automobile in the future.
Even though divorce can be life changing and tough to handle in Massachusetts, taking the necessary financial steps early on in the divorce process can be empowering. In addition, making an effort to resolve money matters with one’s spouse at the negotiation table can help one to experience greater control during such a family law proceeding. If financial issues such as asset division cannot be addressed successfully through negotiation, a judge may have to get involved and address these matters.
Source: forbes.com, “How To Succeed Financially During And After A Divorce“, Mark Avallone, Jan. 27, 2017