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The link between wealth and divorce

North Carolina residents may appreciate the role money plays in a relationship. According to a SunTrust Bank survey, 35 percent of respondents said that money was the primary issues in their relationship. According to the Federal Reserve Board, a relationship was more likely to end when the parties to it had wildly different credit scores. Of course, making a significant amount of money each year doesn't guarantee a person is financially secure.

In some cases, individuals spend a majority of their income, which leaves them with little retirement or other savings. In the event that one spouse makes several million per year, the other spouse may not work. This can result in fiscal inequality between partners that can cause stress in a relationship. That can be further exacerbated if a couple decides that the husband will control the finances while the wife will act as a homemaker.

Child support and buying a home

North Carolina residents who owe back child support and are looking to purchase a home may be concerned about whether their delinquent child support payments will hinder their efforts to be a homeowner. They should be aware that delinquent child support can qualify as a derogatory credit issue, which can lower the likelihood that they will be approved for a mortgage. However, they may have other options as there are loan programs that do not disqualify applicants because of child support arrearage.

It is important that people who want to purchase homes examine their credit reports. They should review all of the line items that are reported and determine if their FICO score is in line with the requirements set by the lender. Individuals should then use a home affordability calculator to determine if they will be able to pay a mortgage while having to make payments for their past due child support payments and any other debts they may have.

Questions to consider before creating a living will

A living will is an important document that details your wishes regarding:

  • Life support
  • Artificial hydration
  • Tube feeding
  • Pain medication

By creating this document, you express your desire for or refusal of certain medical treatment if you find yourself unable to make your own decisions due to an injury, terminal illness or unconsciousness. If you do not have a living will yet, you may be on the fence about writing one. However, you should not wait too long to create one. Here are a few factors you should consider to help you determine if you want a living will

3 steps to making a financial recovery after divorce

Ending your marriage is one of the most life-altering actions you can take, and the process can significantly impact your finances. Divorcing your spouse undoubtedly has an effect on your day-to-day lifestyle as well. Dividing property, legal costs and living on a single income can all wreak havoc on your financial stability.

During the course of your divorce, you may lose some or all of your retirement funds, investments, business interests and real estate. While all this is going on, your income may fall as your expenses rise. Thankfully, not everything is bad news. There are some simple things you can do to improve your financial situation

Financial planning for a later-in-life divorce

Older spouses in North Carolina considering divorce may be concerned about the financial impacts of ending a marriage. More Americans are divorcing at older ages than in the past. While the divorce rate has flattened out or even declined across all demographic groups, the opposite is true for people age 50 and older. Their divorce rate has doubled since the 1990s, a trend that shows no sign of stopping. While people in second or third marriages or those who have been married for a shorter period are at a higher risk of divorce, the "gray divorce" trend has also affected couples who have been married for decades.

A long marriage often means tightly combined financial assets and a view toward retirement based on joint funds. Of course, it is always more costly to support two households out of the same funds that were meant to support one. In addition, when people divorce later in life, they may have less time to compensate for the substantial difference in their retirement funds. With close attention to financial planning, however, older Americans can emerge successfully from this difficult period.

Health, social and economic effects of adults

People in North Carolina who are 50 and older are getting divorced at a higher rate than they did in 1990, but there could be health, social and economic complications for divorce in this age group. Divorce can lead to chronic stress and depression, and these problems are linked to health conditions such as diabetes, high blood pressure, heart disease and more.

Experts suggest that people may have higher expectations for marriage than previous generations, and this combined with women's economic independence along with longer life expectancy could be driving the divorce rate up. Older adults may also be more likely to be remarried, and second marriages are more vulnerable to divorce. For older men, the social consequences of divorce may be particularly acute. Older women are more likely to suffer economically after divorce.

3 mistakes to avoid when choosing a life insurance beneficiary

A life insurance policy can be tremendously helpful for whomever you designate as a beneficiary. You may already know whom you want to name – perhaps a child or your spouse. However, naming a life insurance beneficiary should not be something you do without proper consideration.

If you make mistakes when designating someone as the recipient of your life insurance proceeds, your wishes may not pan out as you want. This may cause issues for your family after you pass away. Here are some mistakes to avoid when naming an heir to your life insurance policy.

Reasons for a prenup

North Carolina couples who plan to get married should consider the importance of completing a prenuptial agreement. The main purpose of the legal document is to verify how assets will be allocated if a marriage ends in divorce. In situations in which a married couple divorces and there is no prenup agreement, the manner in which the assets are divided will be determined by state laws.

Prenups have increased in popularity over the past few years, particularly for people who are getting married for the second time, those with blended families and business owners. Even though a prenup can be very helpful, it has a stigma that makes couples reluctant to take action. One may refrain from broaching the topic with their future spouse for fear that it will make a divorce more likely or that embarrassing financial details may be revealed.

How divorcing parents can co-parent successfully

When parents in North Carolina decide to divorce, the transition to co-parenting can be challenging yet also rewarding. Divorced parents may clash over parenting styles and issues that come with step-parents and blended families. Some parents may find it difficult to communicate after the split while others prepare for regular family meetings. However co-parenting works best for a specific family, there are some guidelines that people can keep in mind to improve their relationship for the benefit of their children.

While the parents have decided to separate, neither has signed up to divorce their children. Both parents have a responsibility to think first of the kids rather than of their problems with one another. This means that each parent has a responsibility to avoid gossiping or complaining about the other parent in front of the children. People should feel free to consult their friends or a therapist, but the children should not feel as if they need to choose between their parents. Arguing harshly with an ex is never a good idea.

Divorcing women: 4 tips for achieving financial stability

Divorce can upend your financial situation and make you reassess every facet of your life. While you are dividing your marital finances, it is a good time to start thinking about securing your future. Creating a financial plan will give you the peace of mind you need and deserve.

After the divorce, you may not be able to maintain your current lifestyle. But here are some steps you can take to achieve financial stability in your single life: 

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