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Why financial planning matters in a divorce

Both men and women in Nevada may benefit from having a financial plan in the event of a divorce. This is because women are increasingly becoming the breadwinners in a household or taking an active role in managing financial affairs. One of the first steps that a divorcing couple may want to take is creating a budget for after the divorce. Information related to a couple's assets and liabilities should be gathered and analyzed thoroughly.

From there, it is important to decide how debts will be paid, if the family home will be kept and how the children will be cared for. This may play a role in determining if either party will receive alimony after a divorce is finalized. Alimony is considered income to the person receiving it and a deduction for the person paying it.

Individuals are advised to review their savings and investment strategies to better secure their financial situation. It may be necessary to review beneficiary designations on items such an IRA or bank account. It may also be necessary to update estate plans and other documents to reflect the end of a marriage. Existing powers of attorney may need to be revoked or revised to better reflect a person's wishes after a divorce becomes official.

When a marriage ends, there may be many issues to sort out such as how to divide property or who gets alimony or child support payments. In some cases, the parties to the divorce themselves can work that out on their own. In others, the couple's respective family law attorneys can take the lead in negotiations.