It’s a misconception to think that divorce involves only legal strategy. Our Arizona law firm recommends viewing divorce as a transition requiring both short-term and long-term planning. Accordingly, after filing a petition for divorce, we advise our clients to assess their lifestyle requirements while the case is pending.
Temporary orders may also be requested from the court, concurrent with the initial filing. Examples of temporary requests include financial support or even protection, in the case of domestic violence.
The next step is to identify areas where agreement may be reached outside of the court's involvement. Keep in mind that issues in a divorce can be discussed concurrently. Any issues that can be resolved through negotiation, in the presence of each party’s attorney, will reduce the costs and time associated with divorce litigation.
Parties in a divorce must also pay close attention to details. For example, the process of dividing marital property requires a comprehensive inventory of the marital estate’s assets and debts. Any property or debts that a couple acquired during their marriage fall under this definition and must be divided equally. Even credit card debt that was in only one spouse’s name may qualify as community debt if the obligation was incurred during the marriage.
Finally, the long-term implications of divorce must not be ignored. According to a recent survey of financial advisors, about 75 percent of divorcing spouses would have benefited from a better approach to their post-divorce finances. That planning depends, in part, on understanding the tax implications of a divorce settlement and the liquidity of one’s cash stream after a divorce.
In order to truly move forward, an individual should also revise his or her will and make a new strategy for retirement saving. Fortunately, our law firm has the legal experience and financial background to guide clients through each aspect of the divorce process.
Source: Business Wire, “New Survey of CPA Financial Planners Explores Financial Impact of Divorce on Retirement,” Feb. 9, 2017