Having a budget enables a person to live and support a lifestyle with the means available. When two people marry, finances are typically combined to allow for a new budget that may provide a better standard of living than was enjoyed prior to the marriage. But what if the marriage doesn’t last and the couple decides to divorce? Family law professionals in Louisiana and elsewhere indicate that financial ramifications can be significant but certain measures can be taken to ease the financial outcome.
Establishing a post-divorce budget should be one of the first steps. A budget should reflect accurate budgetary needs such as fixed expenses and estimated expenses for items such as gas, food and housing. When these items are provided for, savings can be designated for bigger ticket items such as college, retirement or vacation. In addition, it’s a good idea to plan for expenses that may be incurred in the divorce process.
When it comes to dividing up property in the divorce proceedings, it is important to have a thorough understanding of the couple’s combined assets. There are many tax implications to be considered and the dollar amount in one type of account or asset may not necessarily equal the same amount in another account or asset. Some assets are taxed before funds are withdrawn and other may be taxed afterwards.
Divorce in Louisiana is seldom undertaken lightly and the financial implications can be complicated. If a couple is older, there may be additional complications such as whether the lower earning spouse will return to work. If not, this can have a significant impact on spousal support concerns. Consulting with an experienced family law attorney can provide one with information and clarity around these and other issues that may be involved in a divorce proceeding.