4 TIPS FOR A SMOOTH FINANCIAL DIVORCE
Divorce is one of the most difficult times in a person’s life. In addition to the emotions involved and the impact on family, your current and future financial standing is uncertain. While most people focus on avoiding financial loss, Jackson Family Law’s approach focuses on helping their clients gain financial security through divorce. In this article, we will share with you Ruth Jackson and her team’s tips for achieving an equitable division of assets and financial security through the divorce process.
TIP 1 – MAINTAIN MUTUAL RESPECT AND IDENTIFY SHARED FINANCIAL GOALS
The higher the level of conflict the longer the period of time it will take to conclude the divorce process. A lower level of conflict will result in a shorter period of time to conclude the process. Conflict can increase the cost of divorce. Maintaining mutual respect and sharing common goals to work together to resolve differences can help to contain costs. This is one area where your divorce attorney’s approach can help.
Quick and Acceptable
One goal that is shared by most couples heading into a divorce is for a quick and acceptable resolution. A combative approach contradicts this goal as it creates greater conflict and ultimately a longer path to settlement. The longer the conflict the higher the cost of divorce.
Focus on the big picture
Focusing solely on finances ignores the value of a future good relationship with your former spouse as well as peace of mind. Regulating your emotions and keeping your focus on the big picture will help set you up for a smooth financial divorce.
TIP 2 – BE AWARE OF KENTUCKY’S DIVORCE OPTIONS
In Kentucky, there are a variety of divorce options that can allow you to achieve resolution without going to court. Mediation and Collaborative law options are available in addition to litigation in the courtroom. It’s important to understand how each can impact cost and achieve financial security for each party.
Litigation
Litigation is driven by the court system versus being driven by the parties. Scheduling by the court can take months. This leads to a lengthier and more expensive divorce process. Litigation focuses on the individual positions on the issues. Litigation naturally creates an increase in conflict that often makes settlement more difficult.
Mediation
Mediation is an alternative dispute resolution that people often choose as a divorce process. It involves the use of a neutral third party to facilitate settlement discussions and resolution. Ruth Jackson has been trained as a mediator since 2002. The agreement through mediation can be shared with the parties’ attorneys or just to the parties to draft a final settlement agreement and present to the court. The mediator may assist the parties in preparing the required documents, as the third party neutral.
With mediation, the neutral third party works to create a framework of shared goals and guides each party toward an equitable solution that takes the long term interests of both parties into account.
Collaborative Law
Collaborative Law is a client-centered approach for divorcing couples who want to minimize the emotional and financial cost of divorce. Collaborative Law, also known as Collaborative divorce, is a process to settle your divorce out-of- court with the guidance and advice of your own lawyer. The objective is to create an agreement that meets the needs of all family members and avoids the emotional and financial costs of traditional litigation.
TIP 3 – THINK LONG TERM WHEN CONSIDERING CHILD EXPENSES
Divorce involving children will require ongoing coordination and planning with the other parent. In addition, decisions need to be made on the financial support for your children, including decisions regarding child support and other future child-related expenses. These decisions include child support and other future child-related expenses.
Planning for children with special needs
The support of a child in Kentucky ends upon the child being emancipated. This is when the child has turned 18 and has graduated from high school. However, a special needs child may not ever be emancipated. The child may be a wholly dependent child that is never capable of independent living. Parents of children with special needs need to work together to review available financial resources for the future necessary, on-going care of their child. This plan may need to extend through their child’s life.
Understanding and planning for the use of saving vehicles like ABLE Accounts (Achieving a Better Life Experience Account), Special Needs Trusts, or Uniform Transfer to Minors Act Accounts (UTMA), to name a few can help with the ongoing expenses of a wholly dependent child. Knowing what to expect from government assistance and each party in the divorce will help provide a plan that provides a path to meet the ongoing living expenses of children with special needs.
TIP 4 – DON’T STOP PLANNING FOR RETIREMENT
While a divorce can place pressure on your immediate expenses, it is important to continue planning and investing in your retirement. A well balanced strategy including building savings, investing in retirement accounts, and acquiring life insurance should continue to be considered.
Protecting your credit and continuing to build your credit score by practicing responsible management of credit cards will help you ensure you are able to get access to credit when you need it. This will be particularly important when planning for future major purchases.
WHAT IS FINANCIAL SECURITY
Despite the challenges that divorce brings, financial security is possible if you keep these 4 tips in mind. Creating financial security for yourself generally means that you are: debt-free, in control of your expenses, consistently increasing your savings/assets/net worth and are in a job that you enjoy. Focus on these tips, keep in mind the big picture and hire an experienced family lawyer who can be your guide.
THE BEST FAMILY LAW ATTORNEYS IN NORTHERN KENTUCKY
Serving the residents of Kenton County, Campbell County and Boone County, the law office of Jackson Family Law is ready to help you with your family law issues. At Jackson Family Law you won’t get lost in the shuffle. Our service oriented staff is highly organized and highly responsive, promptly responding to all client communications.Mto
