Solana Beach Financial Advisors: The 8 Possible Financial Consequences Of Divorce and How To Avoid Them, PART 2

This four-part article series explains the many financial pitfalls associated with divorce and how women can best avoid them through careful research and the right planning.

Welcome to the second installment of this four-part article series on the possible consequences of divorce and what women can do to avoid or at least offset them.

In our previous article post, Part 1, we explained the fact that divorce can often see even the more affluent of women becoming financially unsecure, which has a lot to do with the cost of divorce itself as well as simply being ill-prepared! This emphasizes the importance of doing thorough research into the assets both you and your (ex) husband have. This might require some digging and even the use of a forensic accountant, but you and your spouse have been a team until now and as such, everything should be fairly divided.

Let’s take a look at some more advice provided by Solana Beach financial planners:

Consequences of Divorce # 3: Losing or Not Having Your Important Documents

Before you even raise the subject of divorce, or soon after it has been raised (since these conversations are seldom planned and executed smoothly), you should shuffle through all of your household files and accumulate crisp copies of the following financial documents and records:

• Loan applications and documents,
• Tax returns,
• Trusts,
• Insurance policies and comprehensive inventories,
• Wills,
• Financial, brokerage and credit card statements,
• All banking information,
• Property deeds,
• Car registration papers,
• Copies of your spouse’s business assets (if you can get your hands on them),
• Any documents that can prove your ownership of assets and/or material items, gifts and inheritance from family.

Having up-to-date copies of all of the above-mentioned financial and legal documents will not only help your lawyer put together a watertight case far quicker (thus saving you money on legal fees), you will also be spared much hassle and frustration.

“No matter how desperately you might wish to exit a marriage, get your affairs in order first,” suggest Solana Beach financial advisors.

Consequences of Divorce # 4: Missed and Forfeited Assets

In most cases, half of everything you and your spouse have accumulated is yours, so be sure not to ignore, overlook or simply forfeit any assets! You may not want certain things, but their value can be traded for something you do want; half of which may belong to your spouse.

What You Should Do

Make a detailed inventory list of all the items owned by you and your husband, from the luxury yacht to the Jet Ski and bank accounts to safe deposit boxes. Review all of your insurance policies, investments and retirement plans as well as those pay stubs with the help of a Solana Beach financial planner. Even the cost of your spouse’s education, which you may have helped put him through, can possibly be claimed for. Expensive business equipment and hobbies should also be investigated. You may want to hire the services of a forensic accountant. All’s fair in love and war and in order to get what’s owed to you (50%) you need to be smart and you need to be thorough.

Stay Tuned for Part 3

Ignoring tax consequences and mixing money and your emotions… To read some more possible financial consequences of divorce for women, stay tuned for the third installment of this four-part article series.