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Sep 3rd, 2008

Reassessing Your Finances in Divorce

Almost every stage in an individual’s personal life requires the reassessment of finances, particularly divorce.

Going through a divorce can bring about unexpected money problems and have a lasting effect on your finances.

Having a Financial Plan Before Marriage

When couples decide to marry they often think of it in a more romantic and idealistic manner than the actuality of merging their financial lives together.

This brings about many issues, including paying joint debts, household expenses together and determining who pays the bills and who makes investments.

"The key is to begin implementing your financial plan when you say, 'I do,' " explains Derrick Kinney, the senior financial adviser at Ameriprise Financial Services Inc. in Arlington.

Knowing Your Role

Oftentimes a married couple beings a different set of values and family influences in regards to money to the newly formed union.

An example of this is the fact that people have different ways in which they go about handling their finances; one could be a saver while the other is a spender.

Discussing these differences before entering a marriage could prevent bumps in the road later on and prevent an eventual divorce.

"Know your roles," says Kinney. "Quickly identify which partner will be responsible for paying the bills and who is responsible for the long-range investing strategy. It could be the same person. Both of you should be in the know, but someone needs to be in charge."

According to reports, a majority of divorces occur due to financial problems and these types of glitches can be prevented if the couple is honest and forthcoming from the beginning.

(Source: Dallas News)

Have you encountered problems in your marriage and are considering a divorce? Please contact one of our specialized divorce attorneys today to get the legal guidance and support you need and deserve.

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