Divorce leads to a lot of changes for any couple regardless of the circumstances. For many Virginia couples, a divorce will lead to an upheaval of finances in the both the short term and the long term. These changes can also impact one party’s career path or the need for one party to work.
As finances are a huge part of a split, it is recommended that both parties understand exactly their financial reality. This means it may be necessary to itemize expenses and income by making a list of bank statements and credit card expenses for the last year. This starting point can help both parties understand how a split will impact lifestyles and what the real cost may be.
If one spouse has not worked in a while, the financial reality of becoming a one-income family or household may mean an unexpected return to the workforce. Aside from financial stabilization, benefits may drive one party back to work. While COBRA may be a means of keeping health insurance after a divorce, it is not a long-term solution; therefore, an individual policy or policy through work may be needed to offset the expense of not having health insurance.
There is a lot to think about when a split is inevitable. The bottom line of the financial changes and workforce changes will vary for each couple in Virginia, but there is no escaping that there will be some changes. Planning for those changes as best as possible can minimize conflict and fear during the divorce process.
Source: entrepreneur.com, “5 Essential Tips for Financial Planning After Divorce“, Andrea Murad, July 10, 2015