Shared financial management may pay off during a divorce

Shared financial management may pay off during a divorce

For many Illinois residents, one of the most challenging aspects of divorce relates to finances. This may be especially true for individuals who did not pay attention to or manage household spending during the marriage. Allowing both spouses to share money management tasks and responsibilities may reduce stress and conflict during a divorce.

Financial planning is essential after a divorce, states an Entrepreneur article. Recently divorced individuals may need to take stock of their income and account for alimony or child support payments. Having detailed financial information may make it easier for an individual to decide whether to keep or sell the house. A person may even choose to pursue different career opportunities based on post-divorce finances. Gathering financial information and understanding it may be extremely difficult for a person who spent the marriage relying on his or her spouse to handle the finances. It may be helpful for both people in the marriage to make spending and budgeting decisions together, whether they get a joint bank account or commit to using budgeting software cooperatively.

While creating a joint bank account was standard practice for married couples decades ago, The Atlantic reports that millennials are frequently choosing to keep their financial assets separate. While a single-income household may have been the standard for much of the 20 century, it is more common for both spouses in younger generations to have full-time jobs. Additionally, millennials wait longer to marry, so they may be less interested in changing financial habits they developed while single.

For some people, merging bank accounts may lead to conflict over purchases and financial priorities. While maintaining separate finances may require additional communication and cooperation in terms of paying bills and filing taxes, it may also give each spouse more financial independence if the relationship ends.

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