Arizona residents going through divorce know that negotiating financial issues can be challenging. Because of the emotions that are involved in separating from a spouse, determining what to do with the family home, dealing with pressure from family members and handling issues related to child custody, it’s easy for an individual to feel overwhelmed and to give in to despair. It is recommended that a person concentrate their energy on solving the problems are in front of them as opposed to allowing their emotions to dictate the decisions they make. This is especially true when discussing financial issues.
The financial decisions that a person makes during divorce can have a long-term impact on their financial well-being. The effects may be felt all the way to retirement. This is true whether an individual is going through a high-asset divorce or if their family is of modest means. An area where this can be seen is dealing with one’s pension during divorce.
It could be that during marriage one spouse earned a pension but the other one did not. The spouse who earned a pension may think that during the divorce, this money is untouchable. They would be mistaken. In most states, the pension that a person earns while they are married is subject to division because it is seen as a marital asset. In certain states, even some of the pension that a person earned prior to marriage is considered a marital asset and could be subject to division. That being said, with proper planning and by making sound financial decisions during divorce, it may be possible for an individual to keep their pension intact by offsetting it with other assets.
A family law attorney may represent their client during divorce proceedings. In addition to handling things like visitation schedules for child custody settlements, they may help their client by advising them on financial matters. This could include dealing with property division, asset valuation, shared accounts, shared debt and other practical issues that may come up during the divorce process.