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Preventative steps to speed financial recovery after divorce

| Jan 22, 2020 | Divorce |

While divorce is a difficult process, people will eventually bounce back from it. This is also true in a financial sense. A study done by Fidelity Investments revealed that it takes about five years for a person to recover financially after a divorce. Virginia residents may be interested taking some smart preventive measures to speed their recovery if divorce is on the horizon.

The same study showed a few of the biggest regrets people have when it comes to their finances after divorce. Eighty percent of the respondents who were not involved in the daily finances during the time they were married felt bad about it. This problem can be prevented by getting involved in the family’s finances now. Each partner should keep tabs on how money is being spent and have access to bank accounts and tax returns.

Another regret was not being involved in retirement investments and long-term planning. This shows the importance of a person knowing their retirement balance and taking steps to prepare for the future. A couple needs to work to communicate about finances and set financial goals.

Prenuptial and postnuptial agreements can help a couple lay out a fair plan as to how their finances will be divided if divorce occurs in the future. Prenuptial agreements protect assets acquired before the marriage. Postnuptial agreements can cover assets acquired during the marriage, perhaps by means of an inheritance or the sale of a business.

Some couples have used a postnuptial agreement to reset their finances and correct bad habits with money. An attorney may be able to help a person draw up this type of document. An attorney may also be able to answer a person’s questions regarding family law and divorce, even representing a client in court if it is necessary.