If you are facing a divorce – particularly if it will be a high-asset divorce – you are probably wondering how the family law case will impact your financial situation. This is obviously a valid concern, because in the typical divorce case the assets are split down the middle, right?
Well, that’s not always the case.
The factual and financial circumstances of any given case can vary. How you handle the property and debt division part of your case – and the months and years after the divorce is finalized – will ultimately determine just how significantly a divorce can impact your financial situation.
A recent news article noted some of the financial aspects of a divorce that can linger both during the divorce case and afterward. For example, the article noted that the actual cost of going through a divorce can vary widely.
In a high-asset divorce case, you can expect those costs to be higher, since you may need to engage appraisers, for example, for real estate or even artwork, to gauge the value of certain assets. Or, you may need to pay for some of the mediation fees, for instance, if that mechanism is used to attempt to resolve outstanding issues in the divorce case.
After the divorce is finalized, your budget is likely to look quite a bit different than it was during married life. Taking control of that situation can help to stabilize your financial situation, even if the impact of a divorce is significant from a financial perspective.
Lastly, another point that the recent news article noted is that the impact of a divorce may mean that your estate plan needs to be updated.
Thinking of your financial situation in the immediate aftermath of a divorce is one thing, but thinking long-term is also crucial, and that is where updating your estate plan comes into play.