Smart planning can reduce financial loss in divorce

Smart planning can reduce financial loss in divorce

There are many parts of a person’s life that can be rocked by the decision to divorce his or her spouse in Illinois. Divorcing couples face challenges as they separate years of shared life from finances to children. Often, the process of beginning to live life independently can be unsettling and difficult. One area that often sees a significant impact in regards to divorce is a couple’s financial stability and long-term financial wealth.

One woman shared the disconcerting tale of how her divorce practically ruined years of effort to accumulate retirement savings. The woman had purchased a home prior to her marriage and hers was the sole name on the property. After some years and her parents own divorce, her father began to suffer health ailments. The woman and her husband decided to refinance their home to help support her father. The issue was that at the time, the woman was primarily a stay at home mom and agreed to add her husband to the deed so they could include his income in their effort to get financed for a loan.

Later on, when she and her husband got divorced, the home was sold and the proceeds were split between them even though the property was initially in the woman’s name. Other negotiations throughout their divorce led to the woman losing nearly $1 million dollars of her retirement savings. Now, as a financial professional herself, she warns other couples of falling into the same predicament. She strongly recommends that engaged couples secure their future with the use of a pre-nuptial agreement. If a divorce does occur, she encourages couples to utilize the resource of working with a financial planner who can help them minimize the financial loss of going through a divorce.

If people are wanting to get a pre-nuptial agreement or are staring divorce in the face, an attorney is a valuable person to work with. Legal professionals can provide reliable advice and support as couples take actions to protect their financial assets through the process of divorce.

Source: MSN, “Getting divorced cost this woman nearly $1 million in retirement savings,” Jacob Passy, Sept. 17, 2019

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