When a marriage ends, a Louisiana couple’s time together often comes down to finances. Even when there are children involved, child support and other expenses are an integral part of the divorce process. This is the time when each party should be preparing for his or her financial future.
Few people could argue that divorce is an emotional roller coaster. However, emotions only tend to complicate matters and lead to disagreements that could put the parties in a courtroom where their choices are made by a judge. Instead, viewing the process as a business transaction could make negotiations easier and more fruitful.
Part of this business transaction involves understanding what income, assets and liabilities are part of the marital estate. Once the appropriate information is gathered, a budget can be created based upon these resources. A realistic budget often opens people’s eyes to the fact that they will not be living the same way after the divorce as they did before. This could mean making hard choices such as selling the family home rather than keeping it because neither party can afford it alone. Understanding realities such as this one prior to beginning settlement negotiations could save confusion and contention later.
Ultimately, the divorce process is designed to ensure that neither party’s financial situation forces him or her into poverty while the other spouse flourishes financially. Hammering out a settlement together allows a Louisiana couple to think outside the box and create an agreement with which both can be satisfied. Compromises and sacrifices will still be necessary, but that does not mean that a secure financial future is out of reach.
Source: CNBC, “Headed for divorce court? Here are your top 5 financial musts“, Andrew Osterland, Dec. 22, 2016