Going through divorce presents numerous hurdles, not the least of which come in the form of financial struggles.
In order to pave the way to a smoother divorce, it is important to understand how to financially prepare for one.
The financial hits after a split
Forbes takes a look into the financial impact of divorce. The average cost of divorce ranges from $15,000 per person in an average situation to $100,000 or more in complicated situations, such as ones involving custody disputes.
On top of that, 45 percent of women over 50 who experienced divorce also saw a drop in their standard of living. 21 percent of men saw a similar drop.
Preventing asset loss
One of the best ways to prevent loss of assets and finances is through planning ahead of time. Do not leave everything up to the court. Do not leave discovering and categorizing assets up to attorneys either, as this could add hours and thousands of dollars onto their bills.
If possible, a couple should sit down together, perhaps with a mediator if necessary. They should look through all of their documents and assets. This includes things like bank accounts, mutual funds, life insurance policies, stocks and bonds, retirement plans, pensions, stock options and more.
Do not forget to include real estate, either. This can include the primary home, business properties, rental properties, vacation properties and more.
If possible, a couple should work with one another so assets get divided in an equitable way. This will reduce the chance of either member seeing a significant reduction in their standard of living, and may save time and effort for both parties as well.