Some Tennessee couples would agree that sometimes, despite working hard to make their relationship work, divorce is inevitable. Even the couples who have enjoyed many years together and who have planned for a financially secure future end up separating. Property division following the end of long-term marriages can become quite complex because usually the couple’s finances are completely entangled due to joint ownership of various assets.
Moreover, after divorce, both spouses may need to re-learn to manage their money independently. A lot of perhaps overlooked financial needs, such as insurance, rent and retirement planning, crop up after a couple decides to live separately. This may pose certain problems for recently divorced couples who have not planned for their future carefully.
Retirement planning is important for couples divoring in later life. In this respect, experts say that dividing assets, it is always better for a person to take into account long-term security rather than focusing on short-term benefits.
During asset division, a divorcing person needs to consider the current market value, liquidity, and tax liabilities for each asset, as well as the the income he or she will require to ensure that he or she leads a financially secure life. Experts believe that accepting the marital property instead in lieu of continued retirement benefits may not be a wise decision.
The entire divorce process is so emotionally stressful that the divorcing couple may find it hard to concentrate on financial aspects during property division and may end up missing out on important details. As a result, after divorce, they may find it difficult to manage their finances independently after being dependent on each other for so long. The advice of an experienced family law attorney may be useful helpful to a person seeking to navigate through complex property division procedures.
Source: Forbes, “Saving your retirement from a divorce,” Greg Brown, Oct. 21, 2013