The Law Offices of James A. Cuddy, LLC

Look toward the financial future during divorce

No matter how solid your plan and how strong your resolve, it is possible to be at least temporarily derailed by the emotions a divorce brings. It is vital to keep in mind, therefore, your priorities and your long-term goals.

Looking toward the future is helpful and healthful for so many reasons during a divorce. In addition to the psychological benefits, the financial benefits can be significant. For instance, while it may seem important to hold onto a sentimental item like a home, it may be in a divorcing spouse’s financial interest to keep more liquid assets.

A house can be a sore point during the divorce process. One spouse may want to stay in the house for the sake of not uprooting the children; another spouse may want to keep the house in order to “win the battle” over the property. Both spouses would be wise, however, to consider how owning the real estate will affect their future financial stability. One spouse may foresee needing heavily liquid assets, while another does not anticipate such a need.

One of the most damaging ways assets can be used during a Connecticut divorce is as weapons. This is not only because it can prolong the divorce process, but also because the result may not be ideal for either party. The more closely the parties work together, the more likely they are to come to a financial outcome that works best for both.

Tools like detailed budgets, measurements of liquidity and tax plans can help to ensure that the divorcing parties understand their assets, their liabilities and their overall financial health. Secure financial health allows each party to focus on the future, rather than regret the past. 

Source: The Wall Street Journal, “Don’t Use Money as a Weapon in Divorce,” Eleanor Blayney, April 17, 2014

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