Getting a divorce means dealing with some significant changes in your life. Your standard of living and finances will likely be affected once your marriage ends. If you’re a Tennessee resident, here are some things you should know about hiring a financial advisor to assist you in your divorce.
The financial impact of divorce
No matter your net worth or income, divorce will affect the way you’re able to live. The impact will likely be bigger if you’re older. When people get a divorce after the age of 50, average income will drop 23% for men and 41% for women. You’ll likely experience a drop in your income even if you have a savings or retirement account in place.
It is important to lower the monetary impact of your divorce by implementing financial planning. You should start working with a financial planner before agreeing to any terms of the divorce settlement.
Your lawyer and other legal professionals can counsel you during your divorce. You should have a clear understanding of the financial consequences of your decisions, which is why scenario planning is essential.
Think about the major financial choices you’ll have to make, such as who will keep the marital home and whether you’ll sell any vehicles that the two of you own together. Consider your retirement plans and pensions, and make sure you know the laws in your state concerning how these funds will be divided.
In some cases, your spouse will be entitled to half of the retirement funds. In other scenarios, your spouse will receive a portion of the retirement funds in a lump sum or in regular payments. When you anticipate what you’ll do in these situations, you’ll be more likely to make an informed decision.