Denver, CO (Law Firm Newswire) September 25, 2012 – While divorce can be emotionally, socially and financially unnerving, it is when someone faces a second (or third) divorce that it can be complicated without the right representation.
“The biggest issue with the financial settlement from a second divorce is that it can easily, inadvertently or intentionally, end up co-claiming the financial resources your first divorce also has earmarked,” said Bill Thode, a Denver divorce attorney.
“Though legal fees and other costs from your previous divorce may be concluded, you can still be paying out child support and alimony, as well as looking at divided retirement and pension assets and paying off taxes owed on capital gains.”
According to the National Center for Family and Marriage Research at Bowling Green State University in Ohio, statistics show that second marriages can, and do end, more often than first marriages. In 2010, researchers found that the overall divorce rate was 17 out of every 1,000 first marriages, and 24 out of 1,000 for consecutive marriages. In other words, if someone is divorced once, he or she faces greater odds of divorcing again.
“In some cases, the court may not take into consideration the monies owed, such as child support, from a previous marriage or other financial obligations,” explains Thode. “You want to go into the dissolution of your marriage as well-prepared as possible, with the best representation possible.”
Thode recommends starting financial conversations early on in the relationship, long before marriage (and divorce) become a reality. Discuss what assets each party is bringing into the marriage, what outstanding financial obligations will be involved for the foreseeable future, what sort of financial support will be offered to the lower-income spouse in the case of a divorce, and formalize any inheritance designations for children from previous marriages. Also known as a prenuptial agreement, the “what happens if” conversation can greatly streamline the process if a marriage dissolution does take place.
Though some people may balk at what they perceive to be a pessimistic approach to a new union, a survey recently conducted by the American Academy of Matrimonial Lawyers revealed that 73 percent of divorce attorneys have reported an increased request for prenuptial agreements. And a 2012 poll by Northwestern Mutual reports that 78 percent of couples surveyed report that they discussed their personal finances before marriage.
Thode Law Firm, P.C.
201 Steele Street, Suite 201
Denver, CO 80206
Call: (303) 330-0425