Divorce has a way of impacting many facets of life. It can be an emotionally nerve-wracking experience for California residents, and it can also be financially devastating unless both parties agree to make fair and informed decisions. Many financial advisors recommend treading lightly where finances are concerned during divorce if people don’t know exactly what they should be doing and to enlist the help of professionals before making any rash decisions.
One financial advisor at a top banking institution suggests looking at the financial picture using a checklist which can chronicle both assets and debts. Such a list could also contain pertinent information such as Social Security numbers. People who should be providing independent advice to those who are divorcing as per these checklists are accountants, financial planners and lawyers.
Other documents pertaining for finances that are important to consider during the divorce process include life insurance policies, health insurance policies, and certain estate planning documents such as a will and power of attorney. If the couple has a prenuptial agreement, it too is likely to speak to assets and debts. Retirement assets might also be considered.
Reviewing the financial picture of a couple during a divorce should not be rushed since there is much at stake for both individuals. It’s crucial each person obtain legal advice before agreeing to anything that’s on paper or has been agreed to verbally regarding finances. Laws regarding divorce in California can be complex and proceeding with caution may be the best approach.