Financial Problems a Divorce Risk in Indiana — Legal Help Minimizes Risks

Managing money after divorce is often challenging for both spouses, but women may have a tougher time and be at higher risk for financial problems, according to Reuters News.

Munster divorce lawyers can help minimize those risks. We can assist clients with avoiding common pitfalls. And we can fight to ensure that an Indiana divorce settlement — including property division, child support and alimony — is in a client’s best interest.Often both parties to a divorce underestimate the financial impact of reducing household income by 50 percent while doubling expenses, including the expense of running two residences.

An experienced Indiana family law attorney will understand the challenges and can often assist with solutions. An experienced divorce lawyer is money well spent and can be vital when it comes to ensuring a fair and equitable separation. Parties who treat legal fees as an expense to be minimized may find themselves far worse off than had they invested in capable legal counsel.

Reuters reports a new study by the University of Virginia’s National Marriage Project found that divorce rates are again on the rise as the economy recovers. Rates had fallen as much as 57 percent in 2009 in response to the economic downturn as couples stayed together to weather the financial storm.

Meanwhile, divorce settlements have become much more complex since 2008 — largely due to couples dealing with bad real estate debt. In many cases, relocation has also impacted child custody cases.

“Three of the top five causes for divorce are often financial: job loss, housing problems and credit card debt,” says Chris Bixby, a senior financial planner and vice president with Key Private Bank. Credit card debt is often a risk divorcing women fall prey to, according to the experts.

Nine out of 10 women will become responsible for their own finances at some point — typically due to death or divorce. Far too many are not prepared with the financial knowledge that can help protect their future. In some cases, they may fall prey to outright scams. In other cases, financial illiteracy may otherwise threaten their future financial well-being.

Seeking the advice of a Munster family law attorney with extensive experience in financial planning can help protect your rights, your future and your family. Without proper planning, a spouse can be left without the resources necessary to build a brighter future. And that’s something all the financial planning in the world may not correct.

Historically, a house has been a couple’s biggest asset. Not so since the collapse of the real estate market. Whether the marital home is an asset or liability depends on many factors, including the property’s current market value. Retirement funds are another critical piece of any divorce settlement.

Highland Divorce Attorney Burton A. Padove offers free and confidential appointments on family law matters throughout Northwest Indiana, including Munster, Lansing, Porter and Crown Point. Call 219-836-2200.

Additional Resources:

Divorce Stress Meets Recession Mess, and Women Struggle, By Lou Carlozo, Reuters.