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Don't neglect financial planning in a divorce

When couples decide to end their marriages in Oregon or elsewhere around the country, there are many questions for them to address. However, the most complicated issues that arise during divorce proceedings often revolve around finances. Experts stress the need for both spouses involved to address several areas during the process.

Advisors emphasize the importance of thoroughly understanding one's financial situation. The first step would be to collect all information regarding assets and liabilities. It would be helpful for both spouses to develop a budget while going through the divorce. While it is critical to consider how immediate expenses will be paid, it is just as important to think about potential future expenditures.

Each spouse also needs to address whether spousal or child support is being paid or received. Not only should the amounts be considered when listing income, there are various tax implications for both parties. Another financial issue involves Social Security, particularly if one of the ex-spouses remarries. Someone may be eligible for spousal benefits, depending on the length of the marriage.

It is also helpful to reevaluate investments after a divorce to make sure future needs are met. Of course, if there are minor children from the marriage, the issue of guardianship is of primary concern. Also, other critical documents would need to be revised to reflect the change in marital status. Beneficiaries on insurance policies, IRAs and annuities are among those items that need to be updated.

Going through a divorce can be stressful. An Oregon divorce attorney can help someone through every step of the divorce process. An experienced lawyer will see that a client's needs are addressed and will work to achieve a favorable outcome in the proceedings.

Source: cnbc.com, "Financial planning for divorce --- it's not just for women", Beth Lynch, Oct. 2, 2017

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