When two people decide to get a divorce, they often focus on the emotional aspects, which is understandable. However, it is important that they not overlook many of the financial issues that come into play when a marriage ends. Some here in Virginia may assume that if they or their spouse earn a high amount of income that getting a divorce won’t have a significant impact on their finances, but that is far from the truth. Experts say that a high-asset divorce requires careful consideration of different financial factors to ensure that the agreement reached is fair.
First, those getting a divorce need to consider both their income and any existing debt. Some spouses may see a significant drop in household income after a divorce, and if one’s debt is too much for the new income level, it can pose an obvious problem. Marital assets and debt are subject to equitable distribution in Virginia, meaning that several factors influence who gets what and income and debts may not be equally divided. A shared home may require special consideration, as it may not make financial sense for one spouse to keep it.
The next set of factors have to do with potential future income and distributions. Many people neglect to change the beneficiary on their retirement, life insurance and other accounts. This could mean that when they pass away, their accounts pass to their ex-spouse. On the other side, some do not realize that they may be able to access certain benefits because of their previous marriage. Some people qualify to collect Social Security benefits based on an ex-spouse’s work record.
Those considering a high-asset divorce here in Virginia will want to be aware of what their new financial picture will look like once everything is said and done. A team of professionals can help with different needs, both financial and legal. An experienced family law attorney in particular may be an important person to include in divorce proceedings.